Latest Ratios: P/E Ratio 7.2x · EV/EBITDA 8.9x · ROE 13.3%. (2001–2025 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 | $4.5B | $4.9B | $4.7B | $4.0B | $3.5B | $2.8B | $2.2B | $1.4B | $1.3B | $1.4B |
| Enterprise Value | $9.7B | $10.8B | $10.1B | $10.2B | $7.5B | $7.9B | $5.2B | $4.0B | $3.3B | $3.0B | $3.2B |
| P/E Ratio → | 7.22 | 9.25 | 11.30 | 7.84 | 4.03 | 6.52 | 11.06 | 11.71 | 8.05 | 9.67 | 8.34 |
| P/S Ratio | 0.19 | 0.25 | 0.28 | 0.32 | 0.26 | 0.35 | 0.39 | 0.30 | 0.20 | 0.21 | 0.21 |
| P/B Ratio | 0.91 | 1.17 | 1.39 | 1.46 | 1.38 | 1.64 | 3.11 | 3.34 | 2.86 | 3.41 | 4.99 |
| P/FCF | 5.93 | 7.96 | 13.39 | 27.68 | 6.83 | 3.21 | 4.66 | 7.62 | — | 6.16 | 27.61 |
| P/OCF | 4.36 | 5.85 | 7.24 | 15.09 | 5.77 | 2.98 | 4.31 | 6.17 | 133.98 | 5.05 | 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 | — | 0.60 | 0.59 | 0.69 | 0.48 | 0.80 | 0.73 | 0.56 | 0.48 | 0.47 | 0.49 |
| EV / EBITDA | 8.91 | 9.98 | 11.06 | 9.95 | 5.57 | 9.42 | 12.65 | 11.17 | 9.59 | 9.49 | 9.68 |
| EV / EBIT | 9.65 | 11.50 | 11.93 | 10.50 | 5.05 | 9.82 | 12.55 | 11.98 | 10.63 | 10.54 | 9.26 |
| EV / FCF | — | 18.98 | 27.74 | 59.51 | 12.70 | 7.26 | 8.57 | 14.26 | — | 13.90 | 62.98 |
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 | 17.1% | 17.1% | 17.2% | 18.6% | 20.1% | 19.3% | 17.2% | 16.2% | 16.0% | 16.4% | 16.2% |
| Operating Margin | 5.6% | 5.6% | 4.9% | 6.4% | 8.2% | 8.0% | 5.2% | 4.5% | 4.5% | 4.5% | 4.6% |
| Net Profit Margin | 2.7% | 2.7% | 2.5% | 4.1% | 6.5% | 5.4% | 3.6% | 2.6% | 2.4% | 2.2% | 2.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.3% | 13.3% | 12.8% | 19.6% | 39.7% | 35.2% | 32.8% | 32.9% | 38.7% | 41.3% | 56.3% |
| ROA | 4.5% | 4.5% | 4.2% | 6.6% | 12.4% | 9.1% | 7.7% | 6.6% | 6.7% | 5.9% | 7.2% |
| ROIC | 8.0% | 8.0% | 7.2% | 9.5% | 14.8% | 12.2% | 9.6% | 9.9% | 10.3% | 10.4% | 10.8% |
| ROCE | 12.8% | 12.8% | 11.3% | 13.4% | 19.0% | 17.9% | 18.0% | 21.3% | 23.1% | 22.7% | 23.5% |
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 | 1.63 | 1.63 | 1.51 | 1.69 | 1.27 | 2.16 | 2.61 | 2.91 | 4.14 | 4.30 | 6.40 |
| Debt / EBITDA | 5.83 | 5.83 | 5.80 | 5.37 | 2.75 | 5.47 | 5.78 | 5.21 | 5.68 | 5.30 | 5.45 |
| Net Debt / Equity | — | 1.61 | 1.49 | 1.67 | 1.19 | 2.07 | 2.61 | 2.90 | 4.12 | 4.29 | 6.39 |
| Net Debt / EBITDA | 5.80 | 5.80 | 5.72 | 5.32 | 2.57 | 5.26 | 5.78 | 5.20 | 5.66 | 5.28 | 5.44 |
| Debt / FCF | — | 11.03 | 14.35 | 31.83 | 5.87 | 4.05 | 3.92 | 6.63 | — | 7.74 | 35.37 |
| Interest Coverage | 3.38 | 3.38 | 3.14 | 5.84 | 9.21 | 7.83 | 5.54 | 3.63 | 3.61 | 3.66 | 4.55 |
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 | 0.95 | 0.95 | 1.11 | 1.06 | 1.85 | 1.21 | 1.15 | 1.29 | 1.19 | 1.23 | 1.21 |
| Quick Ratio | 0.35 | 0.35 | 0.41 | 0.45 | 0.92 | 0.76 | 0.43 | 0.50 | 0.37 | 0.45 | 0.40 |
| Cash Ratio | 0.01 | 0.01 | 0.03 | 0.02 | 0.23 | 0.12 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 |
| Asset Turnover | — | 1.53 | 1.66 | 1.46 | 1.92 | 1.23 | 1.94 | 2.48 | 2.55 | 2.74 | 2.79 |
| Inventory Turnover | 6.99 | 6.99 | 7.20 | 6.81 | 12.86 | 11.05 | 6.75 | 6.13 | 5.41 | 6.54 | 6.11 |
| Days Sales Outstanding | — | 12.42 | 12.93 | 13.92 | 10.55 | 17.42 | 17.27 | 17.62 | 17.45 | 18.19 | 17.95 |
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 | 13.8% | 10.8% | 8.8% | 12.8% | 24.8% | 15.3% | 9.0% | 8.5% | 12.4% | 10.3% | 12.0% |
| FCF Yield | 16.9% | 12.6% | 7.5% | 3.6% | 14.6% | 31.2% | 21.5% | 13.1% | — | 16.2% | 3.6% |
| Buyback Yield | 3.3% | 2.5% | 4.0% | 5.9% | 7.4% | 0.3% | 0.2% | 1.0% | 8.1% | 2.9% | 15.5% |
| Total Shareholder Yield | 3.3% | 2.5% | 4.0% | 5.9% | 7.4% | 0.3% | 0.2% | 1.0% | 8.1% | 2.9% | 15.5% |
| Shares Outstanding | — | $20M | $20M | $21M | $22M | $20M | $19M | $19M | $20M | $21M | $23M |
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying ABG stock.
Asbury Automotive Group, Inc.'s current P/E ratio is 7.2x. The historical average is 12.3x. This places it at the 13th percentile of its historical range.
Asbury Automotive Group, Inc.'s current EV/EBITDA is 8.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.2x.
Asbury Automotive Group, Inc.'s return on equity (ROE) is 13.3%. The historical average is 18.5%.
Based on historical data, Asbury Automotive Group, Inc. is trading at a P/E of 7.2x. This is at the 13th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Asbury Automotive Group, Inc. has 17.1% gross margin and 5.6% operating margin.
Asbury Automotive Group, Inc.'s Debt/EBITDA ratio is 5.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Liquidity and integration risk
Metrics are mathematically derived from official filings.
Margin Compression Amid Integration
Gross margin slipped to 17.2% in Q2 2026 from 17.9% in Q1 2024, while operating margin fell to 5.0%, according to recent financial statements, indicating fading pricing power and rising costs.
The sequential decline in gross margin from 17.7% in Q1 2026 to 17.2% in Q2 2026, coupled with an operating margin drop to 5.0%, suggests that the integration of Larry H. Miller and Stevinson is pressuring profitability. Net margin halved to 2.6% in Q2 2026 from 4.6% in the prior quarter, reflecting not only operational headwinds but also potential one-time charges. The stability of gross margin around 17% over the past year, despite revenue stagnation, indicates that the core dealership model retains some pricing resilience, but the operating leverage is clearly negative as SG&A costs rise faster than sales.
Return on Capital Decelerates Sharply
ROIC fell to 1.8% in Q2 2026 from 2.3% a year earlier, while ROE dropped to 2.9% from 4.1%, based on reported figures, indicating that recent acquisitions are not yet generating adequate returns.
The decline in ROIC from 2.3% in Q2 2025 to 1.8% in Q2 2026, despite a stable asset turnover of 0.39, suggests that margin compression is the primary driver of deteriorating capital efficiency. ROE's drop to 2.9% from 4.1% year-over-year, with equity flat at $3.9B, indicates that earnings are not compounding shareholder value at the pace seen previously. The spike in capital expenditures to 2.7% of revenue in Q2 2026, as noted in the cash flow analysis, may be temporarily depressing returns, but investors should monitor whether the Tekion transformation and facility upgrades eventually lift ROIC above the 2% threshold.
Working Capital Efficiency Worsens
Cash conversion cycle lengthened to 41 days in Q2 2026 from 39 days a year earlier, with DIO rising to 53 days, as per financial statements, indicating slower inventory turnover and potential demand softness.
The increase in days inventory outstanding from 47 days in Q2 2025 to 53 days in Q2 2026 suggests that vehicle inventory is turning over more slowly, which may signal weakening consumer demand or integration-related disruptions. The current ratio fell to 0.91, below 1.0, indicating that current liabilities exceed current assets, a common feature in dealerships due to floorplan financing, but the quick ratio of 0.29 highlights heavy reliance on inventory. The stable DSO of 9 days and DPO of 21 days indicate that receivables and payables management is consistent, but the lengthening CCC from 39 to 41 days reflects the inventory build, which ties up cash and increases floorplan interest costs.
Leverage Creeps Higher, Coverage Thins
Debt-to-EBITDA rose to 22.8x in Q2 2026 from 16.5x a year earlier, while interest coverage fell to 3.2x, based on reported figures, indicating a deteriorating debt service capacity.
The reported D/EBITDA of 22.8x is exceptionally high, though it likely excludes floorplan debt, which is typically off-balance-sheet; nevertheless, the trend from 16.5x in Q2 2025 to 22.8x in Q2 2026 suggests that EBITDA is declining faster than debt is being reduced. Interest coverage of 3.2x in Q2 2026, down from 4.4x a year earlier, indicates that operating income is becoming less sufficient to cover interest expenses, a concern given the rising rate environment. The D/E ratio of 1.41 is lower than peers like AutoNation's 4.35, but the thin cash position of $30.4M and current ratio below 1.0 suggest that the balance sheet is strained, and refinancing risk may be elevated if earnings continue to miss expectations.
Liquidity Buffer Nears Critical Low
Current ratio fell to 0.91 in Q2 2026 from 1.30 a year earlier, with cash at $30.4M, as reported in the balance sheet, indicating a deteriorating ability to cover short-term obligations.
The current ratio has been below 1.0 for three consecutive quarters, and the quick ratio of 0.29 suggests that even after liquidating receivables, the company would struggle to meet immediate liabilities without selling inventory. Cash of $30.4M is minimal relative to total debt of $5.5B, and the negative free cash flow margin of 0.2% in Q2 2026 indicates that internal cash generation is insufficient to service debt. While dealerships typically operate with low liquidity due to floorplan financing, the combination of rising inventory days, falling margins, and heavy capex suggests that ABG may face a cash crunch if the used vehicle market continues to normalize.
Misapplied Metric: Debt-to-Equity
The reported D/E of 1.41 understates true leverage because it excludes floorplan debt, which is typically off-balance-sheet, as per industry practice, making it a misleading indicator of financial risk.
Investors often use D/E to gauge balance sheet risk, but for auto dealerships, floorplan financing is a core operational liability that is not captured in the reported D/E. ABG's D/E of 1.41 appears conservative relative to peers like AutoNation's 4.35, but when including floorplan debt, the true leverage is likely much higher, as evidenced by the D/EBITDA of 22.8x. A more appropriate metric is Debt-to-EBITDA including floorplan debt, or the ratio of total debt (including floorplan) to total capital, which would provide a clearer picture of the company's ability to withstand a downturn. Analysts should also consider the interest coverage ratio, which at 3.2x already signals strain, rather than relying solely on D/E.