Using the industry peer median P/E multiple (trailing + forward), Genuine Parts Company (GPC) has a fair value of $49.49 based on 5 comparable companies in the Specialty Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Genuine Parts CompanyGPC | 14,680 | 224.3x | 13.8x |
| Ulta Beauty, Inc.ULTA | 23,439 | 20.4x | 18.3x |
| Packaging Corporation of AmericaPKG | 19,102 | 24.7x | 21.4x |
| Amcor plcAMCR | 18,443 | 24.9x | 11.0x |
| Lululemon Athletica Inc.LULU | 17,912 | 11.5x | 11.7x |
| Best Buy Co., Inc.BBY | 13,220 | 12.5x | 9.7x |
| Industry Median | 20.4x | 11.7x | |
| (*) Profit after tax | 66 | 1,063 | |
| Equity Value | 1,345 | 12,440 | |
| (/) Outstanding shares | 139 | 139 | |
| Fair Price | $10 | $89 | |
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.