AutoZone Valuation

AZO Stock  USD 3,152  41.14  1.29%   
At this time, the firm appears to be undervalued. AutoZone shows a prevailing Real Value of $3558.85 per share. The current price of the firm is $3151.65. Our model approximates the value of AutoZone from analyzing the firm fundamentals such as Return On Asset of 0.14, operating margin of 0.19 %, and Shares Outstanding of 17.3 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
13.383
Enterprise Value
66.8 B
Enterprise Value Ebitda
15.8797
Price Sales
3.0983
Forward PE
21.0084
Undervalued
Today
3,152
Please note that AutoZone's price fluctuation is very steady at this time. Calculation of the real value of AutoZone is based on 3 months time horizon. Increasing AutoZone's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for AutoZone is useful when determining the fair value of the AutoZone stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of AutoZone. Since AutoZone is currently traded on the exchange, buyers and sellers on that exchange determine the market value of AutoZone Stock. However, AutoZone's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  3151.65 Real  3558.85 Target  2849.75 Hype  3151.65 Naive  3051.85
The real value of AutoZone Stock, also known as its intrinsic value, is the underlying worth of AutoZone Company, which is reflected in its stock price. It is based on AutoZone's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of AutoZone's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence AutoZone's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
3,559
Real Value
3,560
Upside
Estimating the potential upside or downside of AutoZone helps investors to forecast how AutoZone stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of AutoZone more accurately as focusing exclusively on AutoZone's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
33.6636.0638.45
Details
Hype
Prediction
LowEstimatedHigh
3,1503,1523,153
Details
Naive
Forecast
LowNext ValueHigh
3,0503,0523,053
Details
29 Analysts
Consensus
LowTarget PriceHigh
2,5932,8503,163
Details

AutoZone Investments

(749.13 Million)

AutoZone Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining AutoZone's current stock value. Our valuation model uses many indicators to compare AutoZone value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across AutoZone competition to find correlations between indicators driving AutoZone's intrinsic value. More Info.
AutoZone is number one stock in net asset category among related companies. It is number one stock in price to earning category among related companies . The ratio of Net Asset to Price To Earning for AutoZone is about  728,286,014 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AutoZone by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AutoZone's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AutoZone's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates AutoZone's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in AutoZone and how it compares across the competition.

About AutoZone Valuation

The stock valuation mechanism determines the current worth of AutoZone on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of AutoZone. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of AutoZone based exclusively on its fundamental and basic technical indicators. By analyzing AutoZone's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of AutoZone's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of AutoZone. We calculate exposure to AutoZone's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AutoZone's related companies.
Last ReportedProjected for 2024
Gross Profit10.4 B11 B
Pretax Profit Margin 0.17  0.11 
Operating Profit Margin 0.19  0.13 
Net Profit Margin 0.14  0.08 
Gross Profit Margin 0.54  0.38 

8 Steps to conduct AutoZone's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates AutoZone's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct AutoZone's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain AutoZone's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine AutoZone's revenue streams: Identify AutoZone's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research AutoZone's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish AutoZone's growth potential: Evaluate AutoZone's management, business model, and growth potential.
  • Determine AutoZone's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate AutoZone's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

AutoZone Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as AutoZone does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding19.1 M
Quarterly Earnings Growth Y O Y0.172
Forward Price Earnings21.0084

AutoZone Current Valuation Indicators

Valuation refers to the process of determining the present value of AutoZone and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value AutoZone we look at many different elements of the entity such as AutoZone's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. AutoZone's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final AutoZone's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as AutoZone, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use AutoZone's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes AutoZone's worth.
When determining whether AutoZone offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AutoZone's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Autozone Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Autozone Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoZone. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
To learn how to invest in AutoZone Stock, please use our How to Invest in AutoZone guide.
Note that the AutoZone information on this page should be used as a complementary analysis to other AutoZone's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Complementary Tools for AutoZone Stock analysis

When running AutoZone's price analysis, check to measure AutoZone's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AutoZone is operating at the current time. Most of AutoZone's value examination focuses on studying past and present price action to predict the probability of AutoZone's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AutoZone's price. Additionally, you may evaluate how the addition of AutoZone to your portfolios can decrease your overall portfolio volatility.
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Is AutoZone's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoZone. If investors know AutoZone will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoZone listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.172
Earnings Share
141.76
Revenue Per Share
999.527
Quarterly Revenue Growth
0.046
Return On Assets
0.1423
The market value of AutoZone is measured differently than its book value, which is the value of AutoZone that is recorded on the company's balance sheet. Investors also form their own opinion of AutoZone's value that differs from its market value or its book value, called intrinsic value, which is AutoZone's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoZone's market value can be influenced by many factors that don't directly affect AutoZone's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AutoZone's value and its price as these two are different measures arrived at by different means. Investors typically determine if AutoZone is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoZone's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.