Advance Auto Parts Inc (NYSE:AAP)
DCF Value
Estimated DCF Value of one
AAP
stock under the base case scenario is
161.41
USD.
Compared to the current market price of 183.1 USD, the stock is
Overvalued by 12%.
Estimated DCF Value of one NYSE:AAP stock is 161.41 USD. Compared to the current market price of 183.1 USD, the stock is Overvalued by 12% .
DCF valuation is one of two methods of placing a monetary value on a company; the other is Relative Valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.
You can change any inputs, such as future revenue, using Present Value Calculation block.
DCF Value Calculation
Capital Structure
From Present Value to DCF Value
| Present Value | 10.9B USD |
| + Cash & Equivalents | 139M USD |
| Firm Value | 11B USD |
| - Debt | 1.2B USD |
| Equity Value | 9.9B USD |
| / Shares Outstanding | 61.1M |
| AAP DCF Value | 161.41 USD |
To view the process of calculating the Present Value of Advance Auto Parts Inc' future free cash flow, see the Present Value Calculation block.
Present Value Calculation
Discounted Cash Flow Model
Present Value of Free Cash Flow
To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.
DCF Model Financials
Financials used in the DCF Model
AAP Stock DCF Valuation FAQ
Estimated DCF Value of one
AAP
stock under the base case scenario is
161.41
USD.
Compared to the current market price of 183.1 USD, the stock is
Overvalued by 12%.
The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.
1. Present Value Calculation. Using the DCF Operating Model we project
Advance Auto Parts Inc's future free cash flow and discount it at a selected discount rate to calculate its
Present Value (10.9B USD).
2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of
161.41 USD
per one
AAP
share.
