Advance Auto Parts, Inc.

Advance Auto Parts, Inc.

AAPยทNYSE

$57.12

+1.5%
Consumer CyclicalSpecialty Retail

Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also offers air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluids; electrical wires and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oils; oil filters, part cleaners and treatments; and transmission fluids for engine maintenance. Further, it offers battery and wiper installation; engine light scanning and checking; electrical system testing; video clinic; oil and battery recycling; and loaner tool program services. Additionally, the company sells its products through its website. It serves professional installers and do-it-yourself customers. The company operates stores under the Advance Auto Parts, Autopart International, and Carquest brands, as well as branches under the Worldpac name. As of April 23, 2022, it operated 4,687 stores and 311 branches in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and served 1,318 independently owned Carquest branded stores in Mexico, Grand Cayman, the Bahamas, Turks and Caicos, and the British Virgin Islands. The company was founded in 1929 and is based in Raleigh, North Carolina.

At a Glance

Live Snapshot
Market Cap$3.45B
EPS0.7300
P/E Ratio78.25
Earnings Date08/13/2026
Advance Auto Parts, Inc.

Advance Auto Parts, Inc. Fair Value Envelope

AAP ยท NYSE

Our analysis suggests that AAP has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $57.12, this represents a potential HIDDEN relative to our calculated worth for Advance Auto Parts, Inc..

Intrinsic Value
Current Price: $57.12

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value-$83.1M
+ Cash & Equivalents$3.1B
Firm Value$3.0B
- Debt$5.2B
Equity Value-$2.2B
/ Shares Outstanding60,022,245B
DCF Value-$36
OVERVALUED BY 164%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
-$23.0M
-$11.5M
-$5.8M
-$2.9M
-$1.4M
-$718.8K
-$359.4K
-$179.7K
-$89.8K
-$44.9K
Maintenance CapEx
-$25.2M
-$12.6M
-$6.3M
-$3.2M
-$1.6M
-$787.5K
-$393.8K
-$196.9K
-$98.4K
-$49.2K
Owner Earnings
-$48.2M
-$24.1M
-$12.1M
-$6.0M
-$3.0M
-$1.5M
-$753.1K
-$376.6K
-$188.3K
-$94.1K
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
-$44.6M
-$20.7M
-$9.6M
-$4.4M
-$2.1M
-$949.2K
-$439.4K
-$203.4K
-$94.2K
-$43.6K
Terminal Value represents 0.0% of Enterprise Value
Negative Owner Earnings
This company generates negative free cash flow. Consider adjusting maintenance CapEx percentage or check the financial data.