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AutoNation Inc (AN) Fair Value & Analysis

Consumer Cyclical · US · Market cap $6.9B · ISIN US05329W1027

What is AutoNation Inc really worth?

AI AutoNation Inc logo AutoNation Inc AN · US
Price$207.18
Fair Value$329.77
Upside+59.2%
Quality49/100

Below-average quality, trading 37% below our fair value of $329.77.

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Strengths

Ranks above peers (8/13)

Risks

!Expensive Growth (revenue 5y +6.3 %/yr)
!Thin margins · 2.5% net margin
!High debt · negative free cash flow
!Moderate moat 51/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range $235.96 – $412.22

Fair value as of: Aug 28, 2026

From 17 valuation models · updated 8 days ago

Share price −3.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case ($235.96). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

$229.98 $88.77 Fair Value $329.77 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range $88.77 – $229.98 · fair‑value band $235.96 – $412.22 · the $207.18 price screens below the $329.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

Full chart & analysis →

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Analysis

AutoNation Inc (AN) currently trades at $207.18, while our model-based Fair Value estimate is $329.77, implying the stock looks roughly 37.2% undervalued today. The Quality Score stands at 49/100 (below-average quality), in the Consumer Cyclical sector. Bull case: the Dividend Discount group reads highest at a median of $1,393 per share, and 14 of the 17 models we run sit above the $207.18 price. Bear case: the Asset-Based group reads lowest at $46.88, and 3 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, AutoNation Inc generated revenue of $27.5B at a net margin of 2.5%. Revenue declined 2.1% year over year. It earns a return on equity of 29.3%. Net debt stands at $10.1B. Fundamentals as of Aug 28, 2026

Our scenario range runs from $235.96 (bear case) to $412.22 (bull case); at $207.18, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 17% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −25% fair-value upside, at 59%, AN screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $12.47 per share, which is 3.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence $133.54 $180.71 $221.40 74
ROIC Compounder $205.03 $352.86 $478.83 68
EV/EBITDA $261.49 $403.71 $545.93 66
All 17 models by family
DCF Models
Owner Earnings $97.13 $416.14 $1,061 64
Earnings-Based
Graham-Dodd $131.91 $919.92 $1,291 61
Lynch FV $475.26 $678.94 $882.63 59
PEG = 1.0 $475.26 $678.94 $882.63 55
EPV best evidence $133.54 $180.71 $221.40 74
Dividend Discount
Gordon GGM $808.82 $1,612 $2,440 64
DDM Multi-Stage $808.82 $1,393 $1,701 65
Multiples
P/E Multiple $320.07 $426.77 $533.46 63
P/S Multiple $247.33 $329.77 $412.22 58
P/B Multiple $209.89 $279.86 $349.82 55
EV/EBIT $373.39 $552.91 $732.43 65
EV/EBITDA $261.49 $403.71 $545.93 66
EV/Revenue $197.86 $353.44 $509.03 52
Asset-Based
NCAV (Graham) $34.98 $46.88 $69.96 54
Economic Profit
Residual Income $113.50 $134.46 $398.53 64
ROIC Compounder $205.03 $352.86 $478.83 68
Growth Earnings
Growth-Adj P/E $630.88 $901.25 $1,172 65

Widest divergence: Dividend Discount ($1,393) versus Asset-Based ($46.88). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 11.2
P/S ratio 0.26 P/E × margin
EPS (TTM) $18.44 price ÷ EPS = P/E 11.2
Net margin 2.3% FY2025
Return on equity 29.3% TTM
Return on assets (EBIT) 14.9% avg 5y
More key figures
Profitability
Operating margin 4.7% TTM
Growth
Revenue (TTM) $27.5B TTM
Revenue growth (YoY) −2.1% 3y avg +0.8%
EPS growth (YoY) +31.5%
Balance sheet & cash flow
Free cash flow −$198M FY2025
Net debt $10.1B FY2025

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 46 · Market factors (momentum, volatility) 54

Profitability 63
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through four segments: Domestic, Import, Premium Luxury, and AutoNation Finance.

Full company description

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through four segments: Domestic, Import, Premium Luxury, and AutoNation Finance. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products; and indirect financing, as well as arranges finance for vehicle purchases through third-party finance sources. It owns and operates new vehicle franchises from stores located in metropolitan markets in the Sunbelt region, as well as AutoNation-branded collision centers, AutoNation USA used vehicle stores, AutoNation-branded automotive auction operations, and parts distribution centers. The company was formerly known as Republic Industries, Inc. and changed its name to AutoNation, Inc. in 1999. AutoNation, Inc. was incorporated in 1980 and is headquartered in Fort Lauderdale, Florida.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AutoNation Inc reported revenue of $27.6B in FY2025 versus $25.8B in FY2021, a compound +1.7%/yr. Reported net income was $649M in FY2025, compounding −17.1%/yr from FY2021.

Growth Quality 45/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$27.6B
Latest YoY
+3.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.3%
Avg. revenue growth/yr (37Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+33.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+22.3% (22.3 + 0.0)
Revenue +1.7%/yr
FY21 $25.8B
FY22 $27.0B
FY23 $26.9B
FY24 $26.8B
FY25 $27.6B
Net income −17.1%/yr
FY21 $1.4B
FY22 $1.4B
FY23 $1.0B
FY24 $692M
FY25 $649M
Character of growth · EPS growth decomposed (2014-2025) +19.6 % p.a.
Revenue per share +15.3 %

of which total revenue +3.1 % · buybacks/dilution +11.8 %

EBIT margin +2.6 %
Tax rate +2.2 %
Residual (interest, one-offs) −1.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "AutoNation Inc Fair Value". https://www.fairvalue-calculator.com/stock/AN

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto & Truck Dealerships · 97 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside +59% · Top 25%
Return on equity (TTM) 29% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 2% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth −2% · Below median
Debt / equity 2.39× · Higher than 75% of peers

Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper

P/E (TTM) 11.2× · Cheaper than median
P/B 2.94× · Pricier than 75% of peers
P/S (TTM) 0.25× · Cheaper than median
EV/EBITDA 8.0× · Pricier than median
PEG 0.77× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 32
FUTURE0 · sector 13
PAST100 · sector 20
HEALTH0 · sector 90
DIVIDEND0 · sector 71

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Carvana Co CVNA $74.04 $17.59 −76%
Penske Automotive Group PAG $219.62 $217.41 −1%
D'Ieteren Group DIE €175.00 €105.40 −40%
Hotai Motor Co 2207 524.00 TWD 558.82 TWD +7%
CarMax, Inc KMX $62.11 $29.44 −53%
Lithia Motors, Inc LAD $369.61 $498.50 +35%
AUTO1 Group AG1 €21.78 €5.84 −73%
Rush Enterprises, Inc RUSHA $76.27 $66.27 −13%
Valvoline Inc VVV $33.96 $24.55 −28%
Eagers Automotive Limited APE A$23.44 A$17.66 −25%

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Frequently asked questions

Is AutoNation Inc (AN) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of $329.77 versus a price of $207.18, about +59% upside (undervalued).
What is the fair value of AN?
Our model-based fair value for AutoNation Inc is $329.77 (as of Aug 28, 2026), built from audited fundamentals. The current price: $207.18.
What is the quality score of AN?
AutoNation Inc has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of AutoNation Inc (AN)?
AutoNation Inc reported trailing-twelve-month revenue of about $27.5B (latest available figure, as of Aug 28, 2026).
What is the net profit margin of AN?
The net profit margin of AutoNation Inc is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.
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