Advance Auto Parts Stock Price and Value Analysis

Should you buy Advance Auto Parts stock? (NYSE:AAP). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has stable growth.
  • This stock looks overpriced.
  • This company has a low dividend yield.
  • This company is making money at a modest rate.
  • This company is less known than others.

Inside the AAP Numbers

AAP Price
(Advance Auto Parts stock price per share)
$226.86
[?] AAP Fair Price
(based on intrinsic value)
$114.46
[?] AAP Safety Price (based on a variable margin of safety) $68.68
[?] PE Ratio versus Sector 75% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 2% higher than other Specialty Retail stocks
[?] Cash Yield 4.88%
[?] Free Cash Flow Jitter 20%
[?] Dividend Yield 2%
Shares Shorted 3,478,148

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 3,478,148 shares shorted. With 61,563,589 shares available for purchase and an average trading volume over the past 10 trading days of 554,620, it would take at least 6.271 days for all of the short holders to cover their shorts.

Is Advance Auto Parts Stock on Sale?

We believe that Advance Auto Parts may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Advance Auto Parts looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy AAP Stock?

Does Advance Auto Parts have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.