Advance Auto Parts (LTS:0H9G) GF Value Rank : 2 (As of May. 04, 2024)

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What is Advance Auto Parts GF Value Rank?

Advance Auto Parts has the GF Value Rank of 2.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Advance Auto Parts's GF Value Rank

For the Specialty Retail subindustry, Advance Auto Parts's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Advance Auto Parts's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's GF Value Rank falls into.

Advance Auto Parts GF Value Rank Related Terms

Thank you for viewing the detailed overview of Advance Auto Parts's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Advance Auto Parts (LTS:0H9G) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Advance Auto Parts Inc (LTS:0H9G) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AAP:USA AAP:Mexico AWN:Germany A1AP34:Brazil

Address

4200 Six Forks Road, Raleigh, NC, USA, 27609

Website

https://www.advanceautoparts.com

Advance Auto Parts is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. Advance operated 5,086 stores as of the end of 2022, in addition to servicing 1,311 independently owned Carquest stores. The company's Worldpac chain is a premier distributor of imported original-equipment parts. Advance derived 59% of its 2022 sales from commercial clients, with the remainder from DIY shoppers.

Advance Auto Parts (LTS:0H9G) Headlines

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