AA

Advance Auto Parts IncNYSE AAP Stock Report

Last reporting period 05 Oct, 2024

Updated 20 Dec, 2024

Last price

Market cap $B

2.441

Small

Exchange

XNYS - New York Stock Exchange, Inc

View Section: Eyestock Rating

Advance Auto Fair Value

AA

The fair market value of AAP stock is 30.41 USD. Relative to the market price of 43.52 USD Advance Auto is overvalued by 30.1%

Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.

Fair Relative Value

Overvalued 30.1%
30.41 USD
AAP Fair Value
43.52 USD
Market price of AAP

Advance Auto Valuation

Current AAP share ticker price is 43.52 USD.

The fair value level of 30.41 USD can be considered as an effective entry point for long-term investors to start investing in AAP stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.

Price chart is not available

1y
3y
5y
All time
Market price

Current market price

Fair value

Current price is 30% higher its fair value

Min value

Current price is 40% higher its minimum value

Max value

Current price is 51% lower its maximum value

23.12.2024

Market price:

* Eyestock is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on eyestock.io represent a recommendation to buy or sell a security.

AAP stock is overvalued

It means the current price may concern as a Risky Entry Point

Advance Auto Parts Inc Stock Valuation Calculator

How do we value a stock?

As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.

1

Maximum P/E over 5 years

46.67

2

Median P/E over 5 years

21.63

3

Minimum P/E over 5 years

18.44

4

Earning per share (last 12 months)

1.41 USD

Maximum value

1

x

4

=

65.61 USD

Fair value

2

x

4

=

30.41 USD

Minimum value

3

x

4

=

25.92 USD

Advance Auto Parts Inc price metrics

-22.95

Annual return (geometric mean)

44.25

Risk (standard deviation) of returns

β

1.2

Beta (volatility compared to market)

It means that AAP stock is more volatile than the broader market

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View Section: Profitability