AutoZone, Inc. (AZO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+44.5%

$4,678.82

vs $3,236.95 price

Levered DCF

$4,900.88

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.54

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	18.97×	28.22×	20.68×	17.96×	17.9×	15.87×	16.15×	17.01×
P/B	-19.51×	-20.65×	-11.59×	-10.44×	-12.29×	-19.16×	-31.88×	-16.05×
P/S	2.4×	3.72×	2.98×	2.6×	2.68×	2.35×	2.22×	2.32×
EV / EBITDA	16.45×	19.54×	15.43×	14.07×	14.12×	12.36×	12.25×	12.57×
Gross margin	52.3%	52.6%	53.1%	52.0%	52.1%	52.8%	53.6%	53.7%
Operating margin	18.3%	19.1%	20.5%	19.9%	20.1%	20.1%	19.1%	18.7%
Net margin	12.6%	13.2%	14.4%	14.5%	14.9%	14.8%	13.7%	13.6%
Current ratio	0.9×	0.88×	0.84×	0.8×	0.77×	0.87×	1.08×	0.91×
Debt / equity	-5.09×	-3.6×	-2.6×	-2.51×	-2.63×	-4.58×	-9.46×	-3.07×
Interest coverage	7.88×	7.42×	8.23×	11.01×	16.85×	14.94×	11.84×	11.66×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-102.8%	-73.2%	-56.1%	-58.1%	-68.7%	-120.7%	-197.4%	-94.4%
Return on invested capital	24.9%	28.1%	34.2%	35.5%	36.7%	31.1%	22.4%	39.7%
Return on assets	11.9%	12.9%	15.5%	15.8%	15.9%	15.0%	12.0%	16.3%
Free cash flow yield	3.7%	2.5%	3.5%	4.7%	5.8%	8.4%	8.1%	5.9%
Earnings yield	5.3%	3.5%	4.8%	5.6%	5.6%	6.3%	6.2%	5.9%
Enterprise value	$61.2B	$82.5B	$67.1B	$56.1B	$52.5B	$41.5B	$34.5B	$32.6B
Net debt / EBITDA	3.34×	2.85×	2.77×	2.67×	2.43×	2.1×	2.32×	1.96×
Cash conversion cycle (days)	-19	-28	-40	-52	-67	-63	-32	-27