DCF Tool


Advance Auto Parts Inc – Automotive Parts and Accessories Stores
founded in roanoke, va in 1932, advance auto parts is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. our family of companies operate more than 5,100 stores across the united states, canada, puerto rico and the virgin islands under four brands, advance auto parts, carquest auto parts, worldpac and autopart international. when you join our team, you become one of more than 70,000 knowledgeable and experienced team members who are proud to provide outstanding service to our customers, communities and each other every day. at advance, we know our people make the biggest difference in our customers’ service experience. from opportunities in our stores to our rapidly growing business to professional installers to distribution centers and corporate store support, we have a career for you. with our nationwide presence, helpful advice and access to thousands of parts, advance is proud to keep advancing a world in motion for
Analysis Results
Intrinsic Value $193.40
Latest Price $55.03
Relative Value 72% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -3.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -3.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.456 0.438
2024 0.442 0.409
2025 0.428 0.382
2026 0.415 0.356
2027 0.403 0.332
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 12.1 billion. This corresponds to a present value of 9.59 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.92 billion. Adding in the terminal value gives a total present value of 11.5 billion.

There are presently 59.5 million outstanding shares, so the intrinsic value per share is 193.4.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,046,852,000
Current Cash 269,282,000
Current Liabilities 5,370,389,000
Current Debt 185,000,000
Non-Cash Working Capital (NCWC) 592,181,000
Change in NCWC 98,440,000
EBIT 714,151,000
Tax Provision 146,815,000
Depreciation and Amortization 283,800,000
Capital Expenditure -425,961,000
Unlevered Free Cash Flow 508,798,767
Current Assets 6,275,476,000
Current Cash 601,428,000
Current Liabilities 5,180,307,000
Current Debt 0
Non-Cash Working Capital (NCWC) 493,741,000
Change in NCWC -197,353,000
EBIT 838,717,000
Tax Provision 189,817,000
Depreciation and Amortization 259,933,000
Capital Expenditure -289,639,000
Unlevered Free Cash Flow 414,117,602
Current Assets 6,270,001,000
Current Cash 834,992,000
Current Liabilities 4,743,915,000
Current Debt 0
Non-Cash Working Capital (NCWC) 691,094,000
Change in NCWC -108,082,000
EBIT 749,907,000
Tax Provision 157,994,000
Depreciation and Amortization 250,081,000
Capital Expenditure -267,806,000
Unlevered Free Cash Flow 442,106,026
Current Assets 5,695,543,000
Current Cash 418,665,000
Current Liabilities 4,477,702,000
Current Debt 0
Non-Cash Working Capital (NCWC) 799,176,000
Change in NCWC -500,801,000
EBIT 677,180,000
Tax Provision 150,850,000
Depreciation and Amortization 238,371,000
Capital Expenditure -270,129,000
Unlevered Free Cash Flow -15,556,567
Current Assets 6,082,454,000
Current Cash 896,527,000
Current Liabilities 3,885,950,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,299,977,000
Change in NCWC -99,881,000
EBIT 604,275,000
Tax Provision 131,417,000
Depreciation and Amortization 238,184,000
Capital Expenditure -193,715,000
Unlevered Free Cash Flow 405,846,331
Current Assets 5,426,892,000
Current Cash 546,937,000
Current Liabilities 3,480,097,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,399,858,000
Change in NCWC 38,012,000
EBIT 570,212,000
Tax Provision 44,754,000
Depreciation and Amortization 249,260,000
Capital Expenditure -189,758,000
Unlevered Free Cash Flow 618,674,916
Current Assets 5,172,764,000
Current Cash 135,178,000
Current Liabilities 3,676,046,000
Current Debt 306,000
Non-Cash Working Capital (NCWC) 1,361,846,000
Change in NCWC 308,761,000
EBIT 787,598,000
Tax Provision 279,213,000
Depreciation and Amortization 258,387,000
Capital Expenditure -259,559,000
Unlevered Free Cash Flow 797,545,983
Current Assets 4,940,746,000
Current Cash 90,782,000
Current Liabilities 3,797,477,000
Current Debt 598,000
Non-Cash Working Capital (NCWC) 1,053,085,000
Change in NCWC 159,200,000
EBIT 825,780,000
Tax Provision 279,490,000
Depreciation and Amortization 269,476,000
Capital Expenditure -234,747,000
Unlevered Free Cash Flow 713,159,749
Current Assets 4,741,040,000
Current Cash 104,671,000
Current Liabilities 3,743,066,000
Current Debt 582,000
Non-Cash Working Capital (NCWC) 893,885,000
Change in NCWC 780,841,000
EBIT 851,710,000
Tax Provision 287,569,000
Depreciation and Amortization 284,693,000
Capital Expenditure -228,446,000
Unlevered Free Cash Flow 1,375,351,271
Current Assets 3,989,384,000
Current Cash 1,112,471,000
Current Liabilities 2,764,785,000
Current Debt 916,000
Non-Cash Working Capital (NCWC) 113,044,000
Change in NCWC 85,966,000
EBIT 660,318,000
Tax Provision 234,640,000
Depreciation and Amortization 207,795,000
Capital Expenditure -195,757,000
Unlevered Free Cash Flow 510,976,038
Current Assets 3,184,200,000
Current Cash 598,111,000
Current Liabilities 2,559,638,000
Current Debt 627,000
Non-Cash Working Capital (NCWC) 27,078,000
Change in NCWC -21,814,000
EBIT 657,315,000
Tax Provision 236,404,000
Depreciation and Amortization 189,544,000
Capital Expenditure -271,182,000
Unlevered Free Cash Flow 304,867,055

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