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AutoZone, Inc (AZO) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$72.6B (≈ $52.4B)

What is AutoZone, Inc really worth?

AI AutoZone, Inc AZO · NEO
PriceC$17.76
Fair ValueC$8.47
Upside−52.3%
Quality63/100

A solid business, but trading 110% above our fair value of C$8.47.

As of Aug 14, 2026, the fair value of AutoZone, Inc is C$8.47 per share against a price of C$17.76, so the fair value sits 52% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 3y +5.2 %/yr)
Solidly profitable · 14.0% net margin
Negative equity (buybacks among others) · generates free cash flow
Wide moat 67/100

Risks

!Mixed vs. peers (6/13)
!Evidence only medium, so the estimate is less certain
!Weak on future: 12 out of 100
Evidence: Medium Range C$5.85 – C$13.22

Fair value as of: Aug 14, 2026

From 20 valuation models · updated 23 days ago

Fair value updated Aug 14, 2026, revised from C$8.43 to C$8.47 (+0.5%) since Jul 14, 2026. Share price −5.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (C$13.22). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (C$5.85 to C$13.22) leaves room in how you read the outcome.

Price vs Fair Value (16 months)

C$26.96 C$17.70 Fair Value C$8.47 May 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

16‑month range C$17.70 – C$26.96 · fair‑value band C$5.85 – C$13.22 · the C$17.76 price screens above the C$8.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

AutoZone, Inc (AZO) currently trades at C$17.76, while our model-based Fair Value estimate is C$8.47, implying the stock looks roughly 109.7% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of C$10.81 per share, and 0 of the 20 models we run sit above the C$17.76 price. Bear case: the Growth DCF group reads lowest at C$3.92, and 20 of the 20 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, AutoZone, Inc generated revenue of C$18.7B at a net margin of 14.0%. Revenue grew 2.4% year over year. Net debt stands at C$8.5B. The stock trades on a trailing P/E of 20.1 (as of Jun 18, 2026). Fundamentals as of Aug 14, 2026

Our scenario range runs from C$5.85 (bear case) to C$13.22 (bull case); at C$17.76, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −46% fair-value upside, at −52%, AZO screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly C$0.9400 per share, which is 11.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF C$2.56 C$4.60 C$7.49 75
Growth DCF C$2.70 C$4.60 C$7.19 74
Owner Earnings C$2.55 C$4.58 C$7.46 71
All 20 models by family
DCF Models
FCF DCF C$2.56 C$4.60 C$7.49 75
Owner Earnings C$2.55 C$4.58 C$7.46 71
5Y Revenue Exit C$1.93 C$3.86 C$6.23 67
5Y EBITDA Exit C$4.78 C$8.92 C$13.56 71
5Y P/E Exit C$5.22 C$9.70 C$14.17 67
10Y Revenue Exit C$2.01 C$3.78 C$5.94 62
10Y EBITDA Exit C$3.91 C$7.20 C$11.27 64
10Y P/E Exit C$4.18 C$7.72 C$11.71 60
Earnings-Based
Graham-Dodd C$4.16 C$9.57 C$12.28 63
PEG = 1.0 C$1.61 C$2.29 C$2.98 55
EPV C$4.56 C$5.67 C$6.64 71
Multiples
P/E Multiple C$10.09 C$13.45 C$16.82 63
P/S Multiple C$4.17 C$5.56 C$6.95 58
EV/EBIT C$9.84 C$13.82 C$17.79 65
EV/EBITDA C$7.22 C$10.32 C$13.42 67
EV/Revenue C$1.81 C$3.48 C$5.14 51
Growth DCF
Growth DCF C$2.70 C$4.60 C$7.19 74
Rev-Margin DCF C$1.93 C$3.92 C$6.06 68
Economic Profit
ROIC Compounder C$4.73 C$6.06 C$7.37 69
Growth Earnings
Growth-Adj P/E C$7.57 C$10.81 C$14.05 65

Widest divergence: Growth Earnings (C$10.81) versus Growth DCF (C$3.92). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 20.1 as of Jun 18, 2026
P/S ratio 2.66 P/E × margin
EPS (TTM) C$0.9400 price ÷ EPS = P/E 20.1
Net margin 13.2% FY2025
Return on assets (EBIT) 21.0% avg 4y
Operating margin 17.9% TTM
More key figures
Growth
Revenue (TTM) C$18.7B TTM
Revenue growth (YoY) +2.4% 3y avg +5.2%
EPS growth (YoY) −2.1%
Balance sheet & cash flow
Free cash flow C$1.8B FY2025
Net debt C$8.5B FY2025 · ≈ 4.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 60 · Market factors (momentum, volatility) 33

Profitability 75
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 98
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.

Full company description

AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also offers A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic, repair, collision, and shop management information software under the ALLDATA brand through alldata.com; Duralast branded products through duralastparts.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

AutoZone, Inc reported revenue of $18.9B in FY2025 versus $16.3B in FY2022, a compound +5.2%/yr. Reported net income was $2.5B in FY2025, compounding +0.9%/yr from FY2022.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$18.9B
Latest YoY
+2.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
+3.7% · in CAD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+3.7%
Dividend yield0.0%
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.20.1% (2022) → 19.1% (2025) · steady
Revenue +5.2%/yr
FY22 $16.3B
FY23 $17.5B
FY24 $18.5B
FY25 $18.9B
Net income +0.9%/yr
FY22 $2.4B
FY23 $2.5B
FY24 $2.7B
FY25 $2.5B

AZO screens 110% overvalued. Compare with O'Reilly Automotive, Inc →

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Cite: Fair Value Calculator (2026). "AutoZone, Inc Fair Value". https://www.fairvalue-calculator.com/stock/AZO.NEO

Peer Group

Auto Parts · 641 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside −52% · Bottom 25%
Return on assets 13% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 2% · Below median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 20.1× · Cheaper than median
P/S (TTM) 2.81× · Pricier than 75% of peers
P/FCF 29.3× · Pricier than 75% of peers
EV/EBITDA 14.1× · Pricier than median
PEG 1.37× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 14
FUTURE12 · sector 21
PAST0 · sector 28
HEALTH100 · sector 95
DIVIDEND0 · sector 32

VALUE 0: the price sits above our fair-value range.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
O'Reilly Automotive, Inc ORLY $88.50 $47.50 −46%
Hyundai Mobis Co 012330 450,500 KRW 643,909 KRW +43%
Fuyao Glass Industry Group 600660 ¥57.67 ¥84.47 +46%
Samvardhana Motherson International Limited MOTHERSON ₹165.30 ₹80.63 −51%
Magna International Inc MGA $65.57 $68.17 +4%
Genuine Parts Company GPC $137.51 $58.07 −58%
Bosch Limited BOSCHLTD ₹48,700 ₹11,534 −76%
Ningbo Tuopu Group 601689 ¥45.82 ¥28.28 −38%
Bharat Forge Limited BHARATFORG ₹2,063 ₹393.20 −81%
Autoliv, Inc ALIVSDB kr 1,154 kr 198.76 −83%

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Frequently asked questions

Is AutoZone, Inc (AZO) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of C$8.47 versus a price of C$17.76, about −52% upside (overvalued).
What is the fair value of AZO?
Our model-based fair value for AutoZone, Inc is C$8.47 (as of Aug 14, 2026), built from audited fundamentals. The current price: C$17.76.
What is the quality score of AZO?
AutoZone, Inc has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for AutoZone, Inc (AZO)?
Our model-based price target is the fair value of C$8.47 (as of Aug 14, 2026) from 20 valuation models. Cautious scenario C$5.85, optimistic scenario C$13.22. It is a calculation from audited fundamentals, not an analyst target.
What is the AutoZone, Inc stock forecast for 2026?
Our models put fair value at C$8.47, about −52% upside versus a price of C$17.76 (overvalued). Cautious scenario C$5.85, optimistic scenario C$13.22. The calculation is refreshed regularly with new filings.
What is the revenue of AutoZone, Inc (AZO)?
AutoZone, Inc reported trailing-twelve-month revenue of about C$18.7B (latest available figure, as of Aug 14, 2026).
What is the net profit margin of AZO?
The net profit margin of AutoZone, Inc is about 14.0%, meaning it keeps roughly 14.0% of revenue as net income. Based on the latest reported figures.
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