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Autonation Inc. – New Car Dealers
AutoNation, America's largest and most recognized automotive retailer, is transforming the automotive industry through its bold leadership, innovation, and comprehensive brand extensions. As of September 30, 2020, AutoNation owned and operated over 325 locations from coast to coast. AutoNation has sold over 12 million vehicles, the first automotive retailer to reach this milestone. AutoNation's success is driven by a commitment to delivering a peerless experience through Customer-focused sales and service processes. Since 2013, AutoNation has raised $25 million to drive out cancer, create awareness, and support critical research through its DRIVE PINK initiative, which was officially branded in 2015.
Analysis Results
Intrinsic Value $36.68
Latest Price $119.17
Relative Value 225% overvalued
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Cash Flow (Billions)
Analysis Parameters
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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 -16.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -16.8%, 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)
2022 0.146 0.138
2023 0.122 0.109
2024 0.101 0.0855
2025 0.0842 0.0673
2026 0.0701 0.053
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1.91 billion. This corresponds to a present value of 1.37 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.453 billion. Adding in the terminal value gives a total present value of 1.82 billion.

There are presently 49.6 million outstanding shares, so the intrinsic value per share is 36.68.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,811,700,000
Current Cash 60,400,000
Current Liabilities 3,059,800,000
Current Debt 1,809,800,000
Non-Cash Working Capital (NCWC) 1,501,300,000
Change in NCWC -985,000,000
EBIT 1,883,100,000
Tax Provision 435,100,000
Depreciation and Amortization 193,300,000
Capital Expenditure -215,700,000
Unlevered Free Cash Flow 422,627,222
Current Assets 4,152,700,000
Current Cash 569,600,000
Current Liabilities 4,165,900,000
Current Debt 3,069,100,000
Non-Cash Working Capital (NCWC) 2,486,300,000
Change in NCWC -884,000,000
EBIT 945,500,000
Tax Provision 168,300,000
Depreciation and Amortization 198,900,000
Capital Expenditure -156,000,000
Unlevered Free Cash Flow -184,870,405
Current Assets 4,411,100,000
Current Cash 42,000,000
Current Liabilities 5,100,200,000
Current Debt 4,101,400,000
Non-Cash Working Capital (NCWC) 3,370,300,000
Change in NCWC -479,000,000
EBIT 783,900,000
Tax Provision 161,800,000
Depreciation and Amortization 180,500,000
Capital Expenditure -269,300,000
Unlevered Free Cash Flow 9,056,219
Current Assets 4,884,000,000
Current Cash 48,600,000
Current Liabilities 5,658,100,000
Current Debt 4,672,000,000
Non-Cash Working Capital (NCWC) 3,849,300,000
Change in NCWC 205,300,000
EBIT 721,300,000
Tax Provision 133,500,000
Depreciation and Amortization 166,200,000
Capital Expenditure -387,000,000
Unlevered Free Cash Flow 523,908,141
Current Assets 4,797,500,000
Current Cash 69,200,000
Current Liabilities 5,635,700,000
Current Debt 4,551,400,000
Non-Cash Working Capital (NCWC) 3,644,000,000
Change in NCWC -135,500,000
EBIT 764,200,000
Tax Provision 201,500,000
Depreciation and Amortization 158,600,000
Capital Expenditure -310,100,000
Unlevered Free Cash Flow 235,273,369
Current Assets 4,714,800,000
Current Cash 64,800,000
Current Liabilities 5,829,200,000
Current Debt 4,958,700,000
Non-Cash Working Capital (NCWC) 3,779,500,000
Change in NCWC -28,700,000
EBIT 820,400,000
Tax Provision 270,600,000
Depreciation and Amortization 143,400,000
Capital Expenditure -244,500,000
Unlevered Free Cash Flow 374,495,429
Current Assets 4,711,400,000
Current Cash 74,100,000
Current Liabilities 5,169,100,000
Current Debt 4,340,000,000
Non-Cash Working Capital (NCWC) 3,808,200,000
Change in NCWC 644,200,000
EBIT 870,600,000
Tax Provision 279,000,000
Depreciation and Amortization 127,400,000
Capital Expenditure -247,600,000
Unlevered Free Cash Flow 1,058,502,864
Current Assets 3,999,200,000
Current Cash 75,400,000
Current Liabilities 3,882,000,000
Current Debt 3,122,200,000
Non-Cash Working Capital (NCWC) 3,164,000,000
Change in NCWC 95,900,000
EBIT 802,200,000
Tax Provision 262,500,000
Depreciation and Amortization 106,900,000
Capital Expenditure -209,200,000
Unlevered Free Cash Flow 487,171,097
Current Assets 3,830,000,000
Current Cash 69,200,000
Current Liabilities 3,751,800,000
Current Debt 3,059,100,000
Non-Cash Working Capital (NCWC) 3,068,100,000
Change in NCWC 408,400,000
EBIT 729,600,000
Tax Provision 228,600,000
Depreciation and Amortization 95,300,000
Capital Expenditure -160,800,000
Unlevered Free Cash Flow 796,546,062
Current Assets 3,361,100,000
Current Cash 69,700,000
Current Liabilities 3,201,700,000
Current Debt 2,570,000,000
Non-Cash Working Capital (NCWC) 2,659,700,000
Change in NCWC 621,300,000
EBIT 649,600,000
Tax Provision 199,500,000
Depreciation and Amortization 87,300,000
Capital Expenditure -160,600,000
Unlevered Free Cash Flow 946,835,294

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