Using the industry peer median P/E multiple (trailing + forward), O'Reilly Automotive, Inc. (ORLY) has a fair value of $93.63 based on 9 comparable companies in the Auto - Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| O'Reilly Automotive, Inc.ORLY | 79,241 | 31.2x | 28.7x |
| Starbucks CorporationSBUX | 103,551 | 55.8x | 42.2x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| NIKE, Inc.NKE | 76,965 | 24.1x | 33.6x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Hilton Worldwide Holdings Inc.HLT | 70,481 | 49.5x | 33.5x |
| General Motors CompanyGM | 70,067 | 23.0x | 6.1x |
| Carvana Co.CVNA | 65,160 | 35.6x | 40.7x |
| AutoZone, Inc.AZO | 55,766 | 23.4x | 22.6x |
| Industry Median | 32.4x | 28.2x | |
| (*) Profit after tax | 2,538 | 2,762 | |
| Equity Value | 82,281 | 77,994 | |
| (/) Outstanding shares | 856 | 856 | |
| Fair Price | $96 | $91 | |
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.