Using the industry peer median P/E multiple (trailing + forward), AutoZone, Inc. (AZO) has a fair value of $4,423.18 based on 6 comparable companies in the Auto - Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| AutoZone, Inc.AZO | 58,411 | 23.4x | 22.7x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| Hilton Worldwide Holdings Inc.HLT | 70,481 | 49.5x | 33.5x |
| Ross Stores, Inc.ROST | 70,190 | 32.7x | 33.1x |
| General Motors CompanyGM | 70,067 | 23.0x | 6.1x |
| Copart, Inc.CPRT | 32,075 | 20.8x | 23.0x |
| Industry Median | 31.9x | 28.5x | |
| (*) Profit after tax | 2,498 | 2,577 | |
| Equity Value | 79,777 | 72,779 | |
| (/) Outstanding shares | 17 | 17 | |
| Fair Price | $4626 | $4220 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.