Loading...

Advance Auto Parts Inc (NYSE:AAP)

183.1 USD +4.47 USD ( +2.5% )
Watchlist Manager
Advance Auto Parts Inc Logo
Advance Auto Parts Inc
NYSE:AAP
Watchlist

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.

Discount Rate
7.47%
Terminal Growth
0%
Growth Period
5 Years
Discount Rate
7.47%
Terminal Growth
0%
Growth Period
5 Years

You can change any inputs, such as future revenue, using Present Value Calculation block.

AAP DCF Value
Base Case
161.41 USD
Overvaluation 12%
DCF Value
Price
Worst Case
Base Case
Best Case
Open DCF Settings
Close DCF Settings
Advance Auto Parts Inc Competitors:
DCF Valuation
CVNA
Carvana Co
ALLG
Allego NV
BHJC
Bilia AB
ORLY
O'Reilly Automotive Inc
TRA
Turners Automotive Group Ltd
9882
Yellow Hat Ltd
CRMT
America's CAR-MART Inc
VLTA
Volta Inc

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
Overvalued by 12%

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

Rotate your device for better experience.

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

Sensitivity Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Analyze the possible values of AAP stock DCF Value given various model inputs such as Revenue Growth, Operating Margin, and Discount Rate.

See Also

Similar Stocks

AAP Stock DCF Valuation FAQ

What is the DCF value of one AAP stock?

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.

How was the DCF Value calculated?

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.