Is Asbury Automotive Group, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Asbury Automotive Group, Inc. has moved from expensive to attractive, indicating a shift in perception towards the company's value. The company appears to be undervalued, with a P/E ratio of 18, which is lower than its peer Dick's Sporting Goods, Inc. at 30.66, and an EV to EBITDA ratio of 13.52, which is also more favorable compared to AutoNation, Inc. at 15.94. Additionally, the Price to Book Value stands at 2.66, suggesting a reasonable valuation relative to its assets.
In terms of performance, Asbury Automotive has shown a 1-year return of 11.59%, which lags behind the S&P 500's return of 17.14% over the same period, but it has significantly outperformed the index over the 5-year horizon with a return of 149.75% compared to the S&P 500's 96.61%. This mixed performance reinforces the notion that while the stock may currently be undervalued, it has the potential for strong long-term growth.