Question: Identifying Comparables and Valuation Using PB and PE Advanced Auto Parts' book value per share is $51.18 and its forward earnings estimate per share is

Identifying Comparables and Valuation Using PB and PE Advanced Auto Parts'

Identifying Comparables and Valuation Using PB and PE Advanced Auto Parts' book value per share is $51.18 and its forward earnings estimate per share is $7.90. The following information is also available for Advanced Auto Parts and a peer group of companies from the auto parts sector. Forward PE (FY1) 19.71 17.78 Market Cap PB ($ mil) Current 11,110 3.03 28,440 17.89 14,010 4.06 18,920 2.27 18,920 10.64 30,520 210.93 59 1.63 Ticker Advanced Auto Parts (AAP) AutoZone (AZO) CarMax (KMX) America's Car-Mart (CRMT) Copart Inc. (CPRT) O'Reilly Auto Parts (ORLY) US Auto Parts Network (PRTS) Gentex (GNTX) 16.06 EPS 5-Year Historical ROE Growth Rate (T 40) 1.6% 11.39% 5.7% 91.32% 11.3% 25.44% 17.6% 20.72% 27.1% 36.48% 14.6% 282.30% (20.7)% (25.93)% 14.5% 22.95% 12.01 31.34 22.73 21.30 7,062 3.71 16.55 b. Assume that you use as comparables the following set of companies: KMX, CRMT, and GNTX. Estimate Advanced Auto Parts' equity intrinsic value per share using the PB ratio from these peer companies. Round answer to two decimal places. $ 267.26 X c. Use the same comparables as in part b and estimate Advanced Auto Parts' equity intrinsic value per share using the PE ratio from these peer companies. Round answer to two decimal places. $ 180.1 X

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Identifying Comparables and Valuation Using PB and PE Advanced Auto Parts book value per share is $51.18 and its forward earnings estimate per share is $7.90. The following information is also...

Identifying Comparables and Valuation Using PB and PE Advanced Auto Parts' book value per share is $51.18 and its forward earnings estimate per share is $7.90. The following information is also...

Identifying Comparables and Valuation Using PB and PE MarineMax Inc.s equity book value per share is $9.31 and its forward earnings estimate per share is $0.58. The following information is also...

Identifying Comparables and Valuation Using PB and PE Panera Bread Companys book value per share is $26.96 and its forward earnings estimate per share is $6.46. The following information is also...

Identifying Comparables and Valuation Using PB and PE Panera Bread Companys book value per share is $27.18 and its forward earnings estimate per share is $6.68. The following information is also...

Identifying Comparables and Valuation Using PB and PE Panera Bread Company's book value per share is $ 2 6 . 9 6 and its forward earnings estimate per share is $ 6 . 4 6 . The following information...

Identifying Comparables and Valuation Using PB and PE Panera Bread Company's book value per share is $ 2 7 . 7 3 and its forward earnings estimate per share is $ 7 . 2 3 . The following information...

Use the European option pricing formula to find the value of a six-month call option on Japanese yen. The strike price is $1 = 100. The volatility is 25 percent per annum; r$ = 5.5% and r = 6%.

Comment on the following situations in relation to the ASXCGC Principles of Good Corporate Governance and Best Practice Recommendations. a. A member of a board of directors insists on being involved...

1. A perfectly competitive market is not characterized by a. many small firms. b. a great variety of different products. c. free entry into and exit from the market. d. any of the above.

at times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. The company will need to do replacement analysis to determine...

12. Select one or two goals and imagine the goal(s) being achieved to your full satisfaction. How does this goal, or how do these goals, relate to your vision? Experience the achievement of your...

10. Write down a set of values that are important to you. Ask family members and friends to encourage you to live according to your values.

9. Do I have what it takes in terms of ability, motivation, and personal traits to get there? This question may be answered through inventories or evaluations or through questioning others who are...