Is Asbury Automotive Group, Inc. overvalued or undervalued?

As of 29 January 2025, the valuation grade for Asbury Automotive Group, Inc. has moved from fair to attractive, indicating a more favorable outlook for the company. The analysis suggests that Asbury is undervalued, especially when considering its P/E ratio of 18, which is competitive against peers like Williams-Sonoma, Inc. at 17.27 and Penske Automotive Group, Inc. at 11.76. Additionally, the company boasts a solid ROE of 14.88% and an EV to EBITDA ratio of 13.52, further reinforcing its attractive valuation.
In comparison to its peers, Asbury's valuation metrics are compelling, particularly when contrasted with Casey's General Stores, Inc., which has a significantly higher P/E of 34.48, indicating that Asbury may offer better value for investors. Despite a recent underperformance against the S&P 500 over the past year, where it returned 4.72% compared to the index's 10.26%, the long-term performance of 212.54% over five years suggests strong growth potential. Overall, Asbury Automotive Group, Inc. appears to be a promising investment opportunity at its current price of 239.44.