Latest Ratios: P/E Ratio 76.5x · EV/EBITDA 12.6x · ROE 2.0%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.4B | $2.4B | $2.6B | $3.6B | $8.9B | $15.5B | $10.9B | $11.4B | $11.7B | $7.4B | $12.5B |
| Enterprise Value | $5.5B | $4.5B | $4.4B | $7.0B | $12.3B | $18.2B | $13.1B | $13.7B | $11.8B | $7.9B | $13.4B |
| P/E Ratio → | 76.52 | 53.27 | — | 122.06 | 19.22 | 25.12 | 22.06 | 23.42 | 27.48 | 15.53 | 27.28 |
| P/S Ratio | 0.39 | 0.27 | 0.29 | 0.40 | 0.98 | 1.41 | 1.08 | 1.17 | 1.22 | 0.79 | 1.31 |
| P/B Ratio | 1.54 | 1.07 | 1.21 | 1.44 | 3.43 | 4.95 | 3.05 | 3.21 | 3.28 | 2.16 | 4.28 |
| P/FCF | — | — | — | 58.96 | 26.58 | 18.93 | 15.49 | 28.84 | 18.87 | 17.97 | 47.36 |
| P/OCF | — | — | 31.05 | 12.66 | 12.12 | 13.98 | 11.21 | 13.15 | 14.37 | 12.30 | 23.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.52 | 0.49 | 0.76 | 1.35 | 1.66 | 1.29 | 1.42 | 1.23 | 0.84 | 1.40 |
| EV / EBITDA | 12.64 | 10.29 | — | 21.53 | 15.92 | 16.86 | 13.08 | 15.01 | 14.01 | 9.62 | 12.81 |
| EV / EBIT | 33.98 | 92.87 | — | 170.15 | 24.08 | 22.24 | 18.74 | 20.28 | 19.29 | 13.62 | 16.77 |
| EV / FCF | — | — | — | 113.06 | 36.64 | 22.32 | 18.64 | 34.77 | 19.11 | 19.18 | 50.80 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.4% | 43.4% | 37.5% | 41.9% | 46.3% | 44.8% | 44.3% | 43.8% | 44.0% | 43.6% | 44.5% |
| Operating Margin | 1.9% | 1.9% | -4.4% | 0.6% | 5.7% | 7.5% | 7.4% | 7.0% | 6.3% | 6.1% | 8.2% |
| Net Profit Margin | 0.5% | 0.5% | -3.7% | 0.3% | 5.1% | 5.4% | 4.9% | 5.0% | 4.4% | 5.1% | 4.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.0% | 2.0% | -14.3% | 1.2% | 16.2% | 17.8% | 13.9% | 13.7% | 12.2% | 15.0% | 17.1% |
| ROA | 0.4% | 0.4% | -2.9% | 0.2% | 3.8% | 5.0% | 4.3% | 4.8% | 4.8% | 5.7% | 5.6% |
| ROIC | 2.9% | 2.9% | -6.2% | 0.7% | 6.6% | 10.6% | 9.6% | 10.6% | 11.9% | 11.1% | 16.0% |
| ROCE | 2.3% | 2.3% | -6.2% | 0.8% | 7.7% | 11.7% | 10.8% | 11.4% | 11.9% | 11.8% | 17.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.38 | 2.38 | 1.70 | 1.52 | 1.40 | 1.08 | 0.86 | 0.78 | 0.29 | 0.31 | 0.36 |
| Debt / EBITDA | 12.06 | 12.06 | — | 11.81 | 4.72 | 3.12 | 3.05 | 3.02 | 1.24 | 1.27 | 1.00 |
| Net Debt / Equity | — | 0.96 | 0.84 | 1.32 | 1.30 | 0.89 | 0.62 | 0.66 | 0.04 | 0.15 | 0.31 |
| Net Debt / EBITDA | 4.85 | 4.85 | — | 10.30 | 4.37 | 2.56 | 2.21 | 2.56 | 0.18 | 0.61 | 0.87 |
| Debt / FCF | — | — | — | 54.10 | 10.06 | 3.39 | 3.15 | 5.93 | 0.24 | 1.21 | 3.44 |
| Interest Coverage | 0.35 | 0.35 | -8.48 | 0.47 | 10.05 | 21.71 | 14.89 | 16.98 | 10.81 | 9.85 | 13.33 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.75 | 1.75 | 1.32 | 1.20 | 1.11 | 1.21 | 1.32 | 1.27 | 1.57 | 1.56 | 1.41 |
| Quick Ratio | 0.87 | 0.87 | 0.54 | 0.47 | 0.21 | 0.31 | 0.37 | 0.28 | 0.44 | 0.36 | 0.23 |
| Cash Ratio | 0.75 | 0.75 | 0.40 | 0.09 | 0.05 | 0.12 | 0.18 | 0.09 | 0.23 | 0.16 | 0.04 |
| Asset Turnover | — | 0.73 | 0.84 | 0.75 | 0.76 | 0.90 | 0.85 | 0.86 | 1.06 | 1.11 | 1.15 |
| Inventory Turnover | 1.34 | 1.34 | 1.57 | 1.37 | 1.00 | 1.30 | 1.24 | 1.23 | 1.23 | 1.27 | 1.23 |
| Days Sales Outstanding | — | 16.13 | 21.83 | 24.16 | 27.29 | 25.98 | 27.09 | 25.92 | 23.81 | 23.61 | 24.46 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.5% | 2.3% | 5.8% | 3.8% | 1.0% | 0.5% | 0.2% | 0.2% | 0.2% | 0.1% |
| Payout Ratio | 136.4% | 136.4% | — | 697.6% | 72.4% | 27.0% | 11.4% | 3.5% | 4.2% | 3.8% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.3% | 1.9% | — | 0.8% | 5.2% | 4.0% | 4.5% | 4.3% | 3.6% | 6.4% | 3.7% |
| FCF Yield | — | — | — | 1.7% | 3.8% | 5.3% | 6.5% | 3.5% | 5.3% | 5.6% | 2.1% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 0.4% | 6.9% | 5.9% | 4.3% | 4.4% | 2.4% | 0.1% | 0.1% |
| Total Shareholder Yield | 1.8% | 2.5% | 2.5% | 6.2% | 10.7% | 6.9% | 4.8% | 4.5% | 2.6% | 0.3% | 0.3% |
| Shares Outstanding | — | $61M | $60M | $60M | $61M | $65M | $69M | $71M | $74M | $74M | $74M |
Structural margin compression risk
According to recent market data, AAP trades at a forward P/E of 21.25, a multiple that appears disconnected from its underlying operational distress and suggests investors are pricing in a significant turnaround that remains unsupported by the company's current 1.87% operating margin and negative free cash flow.
The valuation premium relative to the company's poor fundamental performance indicates that the market may be misinterpreting the stock as a cyclical recovery play rather than a structural turnaround. Investors should monitor whether this multiple contracts further as the reality of the company's fragmented supply chain and high fixed-cost base continues to weigh on earnings potential.
Based on reported financial statements, AAP's ROIC has languished at 1.7% in 2026Q1, a stark contrast to the double-digit returns generated by industry peers like AutoZone and O'Reilly, which highlights a persistent inability to deploy capital effectively within its current retail and distribution infrastructure.
The consistent failure to generate returns above the cost of capital suggests that the company's massive store footprint is not being utilized efficiently. This decay in capital productivity appears to be a direct consequence of the company's inability to unify its disparate supply chain banners, leading to excessive inventory levels and suboptimal asset turnover.
As reported in quarterly filings, the company's cash conversion cycle remains burdened by an elevated DIO of 291 days, which significantly lags behind industry standards and indicates that AAP is struggling to manage its inventory levels effectively across its fragmented multi-brand distribution network.
The high inventory days suggest that the company is holding too much slow-moving stock, which ties up liquidity and increases the risk of future write-downs. This inefficiency in working capital management appears to be a structural hurdle that prevents the company from matching the fulfillment speed and inventory turns of its more integrated competitors.
According to recent SEC filings, the company's debt-to-EBITDA ratio has reached 30.21, a level that underscores a precarious balance sheet and suggests that the firm's ability to service its debt is highly sensitive to even minor fluctuations in operating performance or interest rate environments.
The reliance on debt to fund operations, combined with a thin interest coverage ratio of 1.52, leaves the company with almost no margin for error. Investors should monitor the company's ability to refinance these obligations, as any further deterioration in operating margins could severely limit the firm's financial flexibility.
The P/E ratio is frequently misapplied to AAP, as it obscures the company's underlying cash burn and structural margin issues, failing to account for the massive capital expenditures required to modernize its legacy IT systems and unify its fragmented supply chain logistics across the Carquest and Worldpac banners.
Instead of relying on P/E, analysts should prioritize free cash flow yield and return on invested capital to assess the company's true earning power. The current focus on earnings multiples ignores the reality that the company's reported net income is often distorted by non-recurring restructuring charges and vendor incentive accounting.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying AAP stock.
Advance Auto Parts, Inc.'s current P/E ratio is 76.5x. The historical average is 30.2x. This places it at the 92th percentile of its historical range.
Advance Auto Parts, Inc.'s current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
Advance Auto Parts, Inc.'s return on equity (ROE) is 2.0%. The historical average is 16.8%.
Based on historical data, Advance Auto Parts, Inc. is trading at a P/E of 76.5x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Advance Auto Parts, Inc.'s current dividend yield is 1.77% with a payout ratio of 136.4%.
Advance Auto Parts, Inc. has 43.4% gross margin and 1.9% operating margin.
Advance Auto Parts, Inc.'s Debt/EBITDA ratio is 12.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.