Genuine Stock Valuation

GPC -  USA Stock  

USD 128.54  7.50  5.51%

Do you wonder what the value of Genuine Parts is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Genuine Parts, is its stock price multiplied by the total number of shares outstanding, calculating Genuine Parts' enterprise value requires a different approach. It uses Genuine Parts' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 1.1 B, whereas Enterprise Value is forecasted to decline to about 20.6 B.
Genuine Parts retains a regular Real Value of $146.88 per share. The prevalent price of the firm is $128.54. At this time, the firm appears to be undervalued. Our model calculates the value of Genuine Parts from evaluating the firm fundamentals such as Return On Equity of 26.70 %, return on asset of 5.63 %, and Current Valuation of 22.17 B as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage taking in undervalued assets and trading overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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Genuine Parts Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Genuine Parts's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 128.54
Share
Please note that Genuine Parts' price fluctuation is very steady at this time. Calculation of the real value of Genuine Parts is based on 3 months time horizon. Increasing Genuine Parts' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Genuine Parts is useful when determining the fair value of the Genuine stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Genuine Parts. Since Genuine Parts is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Genuine Stock. However, Genuine Parts' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
117.84
Downside
146.88
Real Value
148.56
Upside
Estimating the potential upside or downside of Genuine Parts helps investors to forecast how Genuine stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Genuine Parts more accurately as focusing exclusively on Genuine Parts' fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
6.676.716.82
Details
Hype
Prediction
LowEstimated ValueHigh
129.93131.61133.29
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.520.530.53
Details
6 Analysts
Consensus
LowTarget PriceHigh
129.00140.57157.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Genuine Parts' intrinsic value based on its ongoing forecasts of Genuine Parts' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Genuine Parts' closest peers. When choosing an evaluation method for Genuine Parts, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Genuine Valuation Drivers Correlation

Many accounts on the financial statements of Genuine Parts are highly interrelated and sometimes correlated. Consequently, when conducting Genuine's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Genuine
Click cells to compare fundamentals

Genuine Valuation Trend

Knowing Genuine Parts' actual value is paramount for traders to make sound investment determinations. Genuine Parts' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Genuine Parts' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Genuine Parts' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Genuine Market Cap

Genuine Parts is one of the top stocks in market capitalization category among related companies. Market capitalization of Specialty Retail industry is currently estimated at about 29.69 Billion. Genuine Parts totals roughly 18.31 Billion in market capitalization claiming about 62% of equities listed under Specialty Retail industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Genuine Parts Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Genuine Parts's current stock value. Our valuation model uses many indicators to compare Genuine Parts value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Genuine Parts competition to find correlations between indicators driving Genuine Parts's intrinsic value. More Info.
Genuine Parts is rated # 2 in five year return category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  1.94  of Price to Book per Five Year Return. As of May 27, 2022, Price to Book Value is expected to decline to 5.47. Comparative valuation analysis is a catch-all model that can be used if you cannot value Genuine Parts by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Genuine Parts' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Genuine Parts' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Genuine Parts' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Genuine Parts and how it compares across the competition.

About Genuine Parts Valuation

The equity valuation mechanism determines the current worth of Genuine Parts on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Genuine Parts. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Genuine Parts based exclusively on its fundamental and basic technical indicators. By analyzing Genuine Parts's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Genuine Parts's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Genuine Parts. We calculate exposure to Genuine Parts's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Genuine Parts's related companies.
Last ReportedProjected for 2022
Gross Profit6.6 B6.3 B
Profit Margin 0.048  0.0424 
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia. Genuine Parts operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 52000 people.

Genuine Parts Quarterly Enterprise Value

20.37 Billion

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Genuine Parts' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Genuine Parts' value is low or high relative to the company's performance and growth projections. Determining the market value of Genuine Parts can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Genuine Parts represents a small ownership stake in the entity. As a stockholder of Genuine, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Genuine Parts Dividends Analysis For Valuation

Please note that Genuine Parts has scaled down on payment of dividends at this time. Genuine Parts Accumulated Retained Earnings Deficit are projected to increase significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 4.09 Billion. The current year Price to Earnings Ratio is expected to grow to 24.13, whereas Earning Before Interest and Taxes EBIT is forecasted to decline to about 1.1 B.
There are various types of dividends Genuine Parts can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Genuine shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Genuine Parts directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Genuine pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Genuine Parts by the value of the dividends paid out.

Genuine Parts Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Genuine Parts does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.38
Earnings Quarterly Growth12.90%
Revenue Growth18.60%
Payout Ratio51.78%
Enterprise Value To Ebitda13.30
Earnings Growth14.70%
Enterprise Value To Revenue1.12

Genuine Parts Current Valuation Indicators

Valuation refers to the process of determining the present value of Genuine Parts and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Genuine we look at many different elements of the entity such as Genuine's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Genuine Parts' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Genuine Parts' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Genuine Parts, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Genuine Parts' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Genuine Parts' worth.
Please check Risk vs Return Analysis. Note that the Genuine Parts information on this page should be used as a complementary analysis to other Genuine Parts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running Genuine Parts price analysis, check to measure Genuine Parts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Genuine Parts is operating at the current time. Most of Genuine Parts' value examination focuses on studying past and present price action to predict the probability of Genuine Parts' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Genuine Parts' price. Additionally, you may evaluate how the addition of Genuine Parts to your portfolios can decrease your overall portfolio volatility.
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Is Genuine Parts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Genuine Parts. If investors know Genuine will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Genuine Parts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Genuine Parts is measured differently than its book value, which is the value of Genuine that is recorded on the company's balance sheet. Investors also form their own opinion of Genuine Parts' value that differs from its market value or its book value, called intrinsic value, which is Genuine Parts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Genuine Parts' market value can be influenced by many factors that don't directly affect Genuine Parts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Genuine Parts' value and its price as these two are different measures arrived at by different means. Investors typically determine Genuine Parts value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Genuine Parts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.