Latest Ratios: P/E Ratio 11.2x · EV/EBITDA 10.5x · ROE 27.1%. (1996–2025 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 | $6.6B | $7.9B | $6.8B | $6.7B | $6.1B | $8.8B | $6.2B | $4.4B | $3.3B | $5.0B | $5.0B |
| Enterprise Value | $16.7B | $18.0B | $15.4B | $14.8B | $12.4B | $13.7B | $10.9B | $10.4B | $9.8B | $11.5B | $11.6B |
| P/E Ratio → | 11.25 | 12.12 | 10.04 | 6.60 | 4.42 | 6.38 | 16.23 | 9.78 | 8.23 | 11.59 | 11.72 |
| P/S Ratio | 0.24 | 0.28 | 0.26 | 0.25 | 0.23 | 0.34 | 0.30 | 0.21 | 0.15 | 0.23 | 0.23 |
| P/B Ratio | 3.12 | 3.36 | 2.79 | 3.05 | 2.97 | 3.69 | 1.91 | 1.39 | 1.20 | 2.13 | 2.19 |
| P/FCF | — | — | — | 21.50 | 4.54 | 6.21 | 5.89 | 8.80 | 29.58 | 22.23 | 18.95 |
| P/OCF | 58.80 | 70.30 | 21.75 | 9.31 | 3.65 | 5.38 | 5.13 | 5.72 | 6.38 | 9.33 | 9.79 |
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 | — | 0.65 | 0.58 | 0.55 | 0.46 | 0.53 | 0.53 | 0.49 | 0.46 | 0.53 | 0.53 |
| EV / EBITDA | 10.53 | 11.34 | 9.99 | 7.91 | 5.59 | 6.52 | 14.27 | 10.34 | 10.39 | 11.46 | 11.19 |
| EV / EBIT | 12.51 | 14.36 | 11.39 | 8.72 | 6.17 | 7.09 | 15.37 | 12.11 | 12.59 | 13.45 | 12.92 |
| EV / FCF | — | — | — | 47.19 | 9.28 | 9.67 | 10.34 | 20.77 | 89.01 | 50.65 | 43.36 |
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 | 17.0% | 17.0% | 17.9% | 19.0% | 19.5% | 19.2% | 17.5% | 16.5% | 15.9% | 15.6% | 15.3% |
| Operating Margin | 4.8% | 4.8% | 4.9% | 6.1% | 7.5% | 7.4% | 2.8% | 3.9% | 3.6% | 3.9% | 4.1% |
| Net Profit Margin | 2.3% | 2.3% | 2.6% | 3.8% | 5.1% | 5.3% | 1.9% | 2.1% | 1.8% | 2.0% | 2.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.1% | 27.1% | 29.7% | 47.9% | 62.3% | 48.9% | 11.9% | 15.3% | 15.6% | 18.6% | 18.5% |
| ROA | 4.7% | 4.7% | 5.5% | 9.3% | 14.5% | 14.6% | 3.7% | 4.2% | 3.8% | 4.3% | 4.4% |
| ROIC | 8.5% | 8.5% | 9.2% | 13.3% | 19.4% | 18.8% | 5.0% | 6.7% | 6.5% | 7.2% | 7.8% |
| ROCE | 17.2% | 17.2% | 20.0% | 25.3% | 32.3% | 32.8% | 10.0% | 15.5% | 16.1% | 19.0% | 20.6% |
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 | 4.35 | 4.35 | 3.52 | 3.67 | 3.13 | 2.08 | 1.62 | 1.91 | 2.43 | 2.75 | 2.84 |
| Debt / EBITDA | 6.42 | 6.42 | 5.60 | 4.34 | 2.89 | 2.36 | 6.89 | 6.00 | 6.99 | 6.50 | 6.36 |
| Net Debt / Equity | — | 4.33 | 3.50 | 3.65 | 3.10 | 2.06 | 1.45 | 1.89 | 2.41 | 2.72 | 2.82 |
| Net Debt / EBITDA | 6.38 | 6.38 | 5.56 | 4.31 | 2.85 | 2.33 | 6.14 | 5.96 | 6.94 | 6.43 | 6.30 |
| Debt / FCF | — | — | — | 25.70 | 4.74 | 3.47 | 4.45 | 11.97 | 59.43 | 28.41 | 24.41 |
| Interest Coverage | 3.40 | 3.40 | 3.09 | 5.20 | 11.43 | 16.24 | 4.49 | 3.50 | 3.12 | 3.93 | 4.66 |
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 | 0.84 | 0.84 | 0.74 | 0.77 | 0.92 | 0.92 | 1.00 | 0.86 | 0.86 | 0.85 | 0.81 |
| Quick Ratio | 0.22 | 0.22 | 0.21 | 0.23 | 0.32 | 0.31 | 0.37 | 0.22 | 0.22 | 0.25 | 0.20 |
| Cash Ratio | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | 0.02 | 0.14 | 0.01 | 0.01 | 0.01 | 0.01 |
| Asset Turnover | — | 1.92 | 2.06 | 2.25 | 2.68 | 2.89 | 2.06 | 1.99 | 2.01 | 2.10 | 2.15 |
| Inventory Turnover | 6.74 | 6.74 | 6.54 | 7.19 | 10.60 | 11.31 | 6.47 | 5.39 | 4.94 | 5.40 | 5.20 |
| Days Sales Outstanding | — | 12.53 | 14.82 | 14.40 | 11.62 | 10.31 | 15.59 | 16.14 | 17.12 | 18.83 | 17.45 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.9% | 8.3% | 10.0% | 15.1% | 22.6% | 15.7% | 6.2% | 10.2% | 12.2% | 8.6% | 8.5% |
| FCF Yield | — | — | — | 4.7% | 22.0% | 16.1% | 17.0% | 11.4% | 3.4% | 4.5% | 5.3% |
| Buyback Yield | 12.0% | 10.1% | 6.7% | 13.0% | 27.9% | 26.5% | 5.9% | 1.0% | 3.1% | 8.6% | 10.1% |
| Total Shareholder Yield | 12.0% | 10.1% | 6.7% | 13.0% | 27.9% | 26.5% | 5.9% | 1.0% | 3.1% | 8.6% | 10.1% |
| Shares Outstanding | — | $38M | $40M | $45M | $57M | $75M | $89M | $91M | $91M | $98M | $104M |
High leverage and interest
According to current market data, AutoNation trades at a forward P/E of 8.93, which suggests that investors are pricing in a significant earnings contraction relative to historical averages and peer multiples, reflecting deep skepticism regarding the sustainability of current automotive retail margins in a normalizing demand environment.
The low P/E multiple relative to the broader market indicates that the company is viewed as a mature, cyclical entity rather than a growth vehicle. This valuation appears to discount the potential for long-term margin expansion, suggesting that the market is prioritizing immediate cash flow risks over the company's franchised service moat.
Based on reported financial statements, AutoNation's ROIC has trended downward to 2.7% in 2026Q1, a decline that highlights the difficulty of maintaining efficient capital deployment as the company balances aggressive share repurchases against the capital-intensive expansion of its used-vehicle store footprint in a competitive market.
The compression in ROIC suggests that the incremental capital invested in new store formats may not be generating returns commensurate with the company's historical franchised dealership performance. Investors should monitor whether this trend indicates a permanent shift toward lower-margin operations or merely a temporary drag from recent expansion efforts.
As reported in recent filings, the company's cash conversion cycle has remained elevated at 64 days in 2026Q1, a metric that reflects the inherent difficulty of managing inventory turnover in a high-interest rate environment where holding costs directly erode the profitability of each vehicle sold.
The persistent DIO (Days Inventory Outstanding) levels suggest that inventory management remains a primary bottleneck for cash flow generation. This inefficiency forces the company to rely more heavily on floorplan financing, which exacerbates the impact of interest rate volatility on the bottom line.
According to recent SEC filings, AutoNation's debt-to-equity ratio reached 4.35 in 2025Q4, a level that appears significantly higher than industry peers and suggests that the company's aggressive capital allocation strategy has left it with limited room to maneuver during periods of tightening credit and cyclical downturns.
The high leverage ratio, combined with interest coverage that has fluctuated between 2.75x and 7.96x, warrants close investigation into the company's ability to service debt if vehicle sales volumes continue to soften. This financial structure may force management to prioritize debt reduction over the share buybacks that have historically supported the stock price.
Based on an analysis of the business model, the P/E ratio is frequently misapplied to AutoNation because it fails to account for the massive non-cash depreciation of dealership assets and the volatility of LIFO inventory accounting, which can artificially distort earnings and mask true cash-generating capacity.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better capture the company's operational performance, as these metrics are less sensitive to the accounting distortions inherent in the franchised dealership model. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation floor.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AN stock.
AutoNation, Inc.'s current P/E ratio is 11.2x. The historical average is 13.0x. This places it at the 32th percentile of its historical range.
AutoNation, Inc.'s current EV/EBITDA is 10.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.3x.
AutoNation, Inc.'s return on equity (ROE) is 27.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.7%.
Based on historical data, AutoNation, Inc. is trading at a P/E of 11.2x. This is at the 32th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AutoNation, Inc. has 17.0% gross margin and 4.8% operating margin.
AutoNation, Inc.'s Debt/EBITDA ratio is 6.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.