Latest Ratios: P/E Ratio 56.3x · EV/EBITDA 10.6x · 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 | $2.5B | $2.4B | $2.6B | $3.6B | $8.9B | $15.5B | $10.9B | $11.4B | $11.7B | $7.4B | $12.5B |
| Enterprise Value | $4.6B | $4.5B | $4.4B | $7.0B | $12.3B | $18.2B | $13.1B | $13.7B | $11.8B | $7.9B | $13.4B |
| P/E Ratio → | 56.30 | 53.27 | — | 122.06 | 19.22 | 25.12 | 22.06 | 23.42 | 27.48 | 15.53 | 27.28 |
| P/S Ratio | 0.29 | 0.27 | 0.29 | 0.40 | 0.98 | 1.41 | 1.08 | 1.17 | 1.22 | 0.79 | 1.31 |
| P/B Ratio | 1.13 | 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 | 10.58 | 10.29 | — | 21.53 | 15.92 | 16.86 | 13.08 | 15.01 | 14.01 | 9.62 | 12.81 |
| EV / EBIT | 28.45 | 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 | 2.4% | 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 | 1.8% | 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 | 2.4% | 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 |
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 56.3x. 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 10.6x. 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 56.3x. 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 2.41% 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.
Key Metrics
Top Statement Risk
Leveraged balance sheet amid margin compression
Metrics are mathematically derived from official filings.
Valuation Discount Reflects Distress
The forward P/E of 14.45 and EV/EBITDA of 13.02 represent a deep discount to peers like O'Reilly (30.00 P/E, 20.68 EV/EBITDA), pricing in a severe operational turnaround that has yet to materialize in the company's reported financials.
AAP's valuation multiples are at a historic discount to the sector, but this appears justified by its structurally inferior margins and negative free cash flow trajectory. The trailing P/E of 59.77 is misleading due to near-zero earnings; the forward P/E of 14.45 is more instructive, yet still demands a level of earnings recovery not yet evident in the -5.4% YoY revenue trend. The market is pricing this as a high-variance distress play rather than a stable compounder.
Gross Margin Recovery Fails to Translate
Despite a significant recovery in gross margin to 46.2% in Q2 2026 from a low of 17.4% in Q4 2024, the operating margin has only expanded to 5.1%, suggesting severe SG&A overhead is preventing operating leverage.
The gross margin rebound is the most positive trend in the data, indicating improved inventory management or pricing. However, the failure of this gross profit growth to flow through to the bottom line is the critical issue. With SG&A consuming the vast majority of gross profit, the company demonstrates negative operating leverage, meaning incremental revenue or gross profit improvements are not translating to materially higher operating income. This structural inefficiency must be addressed for any sustainable earnings power.
ROIC Deep in Value-Destroying Territory
Return on Invested Capital (ROIC) of 1.7% in Q2 2026 remains far below the estimated cost of capital and is dwarfed by peers like AutoZone (34.0%) and O'Reilly (37.2%), confirming the company is destroying value for shareholders.
The ROIC trend shows a minor recovery from the catastrophic -12.4% in Q4 2024, but the current 1.7% return is economically insignificant. For a capital-intensive retail business, this indicates that the assets and equity invested in the business are generating negligible returns. The driver is clearly profitability, as asset turnover remains chronically low at 0.17, compounding the problem of thin margins.
Inventory Overhang and Cash Cycle Expansion
The Cash Conversion Cycle (CCC) has expanded to 74 days in Q2 2026 from 42 days a year prior, driven primarily by a dramatic increase in Days Inventory Outstanding (DIO) to 299 days, signaling a massive inventory overhang and working capital inefficiency.
The CCC expansion is a major red flag for operational efficiency. The DIO surge from 274 to 299 days suggests the company is holding inventory far longer than is optimal, tying up capital and potentially indicating obsolete stock or misalignment with demand. This is a key differentiator from peers with highly efficient, just-in-time systems like O'Reilly. The inability to turn inventory quickly directly hampers cash flow generation and return on capital.
Debt Service Comfortable but Flexibility Gone
While the interest coverage ratio has improved to 2.56 in Q2 2026, the debt-to-equity ratio remains elevated at 2.31, and the large cash balance of $3.1B may be restricted, limiting true financial flexibility for strategic investments.
The leverage profile presents a dichotomy. The nominal interest coverage has recovered from negative territory, but the coverage of 2.56 is still thin for a cyclical retailer and leaves little margin for error. The more pressing issue is the balance sheet inflexibility; with debt at 2.31x equity, the company has limited capacity to fund necessary capital expenditures or strategic pivots without further straining its position. The prior analysis suggests the large cash balance may not be fully available for corporate purposes.
The Current Ratio's False Signal
The improving current ratio, reaching 1.75 in Q2 2026, is the most commonly misapplied metric for AAP, as it obscures the severe operational inefficiency revealed by the expanding cash conversion cycle and deteriorating inventory turnover.
The current ratio is traditionally used as a liquidity proxy, but in AAP's case, it creates a dangerously misleading picture. The ratio's improvement is driven by a buildup in cash and current assets that is not translating into operational health. A focus on this static balance sheet snapshot ignores the dynamic and deteriorating working capital metrics like DSO and DIO, which reveal the true stress in the business model. Analysts should instead focus on the CCC and operating cash flow trends for a more accurate assessment of liquidity and operational vitality.