Group 1 Automotive, Inc. (GPI) 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

-74.8%

$67.57

vs $268.28 price

Levered DCF

$949.07

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.24

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.63×	11.48×	7.1×	3.81×	6.46×	8.43×	10.71×	6.5×
P/B	1.79×	1.88×	1.56×	1.24×	1.89×	1.61×	1.43×	0.88×
P/S	0.22×	0.28×	0.23×	0.17×	0.26×	0.22×	0.15×	0.08×
EV / EBITDA	12.29×	10.57×	7.58×	5.15×	6.53×	8.81×	11.86×	9.8×
Gross margin	15.5%	16.3%	16.9%	18.3%	18.1%	16.4%	15.2%	14.9%
Operating margin	4.2%	4.6%	5.4%	6.7%	6.6%	4.7%	3.1%	2.9%
Net margin	1.4%	2.5%	3.4%	4.6%	4.1%	2.7%	1.5%	1.4%
Current ratio	1.08×	1.03×	1.11×	1.03×	1.08×	1.09×	1.04×	1.01×
Debt / equity	2.1×	1.76×	1.46×	1.5×	1.56×	1.83×	2.65×	2.78×
Interest coverage	3.05×	3.64×	5.91×	10.41×	10.6×	4.9×	2.64×	2.51×
Dividend yield	0.5%	0.5%	0.6%	0.9%	0.7%	0.5%	1.1%	2.2%
Payout ratio	7.9%	5.1%	4.2%	3.2%	4.3%	3.8%	11.7%	13.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.6%	16.8%	22.5%	33.6%	30.2%	19.8%	13.9%	14.4%
Return on invested capital	7.5%	7.9%	10.5%	14.0%	13.9%	8.8%	5.6%	6.0%
Return on assets	3.1%	5.1%	7.7%	11.2%	9.6%	5.6%	3.1%	3.2%
Free cash flow yield	7.5%	4.0%	-2.9%	15.2%	34.9%	35.7%	7.8%	9.4%
Earnings yield	6.5%	8.9%	14.4%	27.1%	16.0%	12.3%	9.7%	16.3%
Enterprise value	$10.8B	$10.8B	$8B	$6.1B	$6.3B	$4.9B	$5.1B	$4B
Net debt / EBITDA	6.62×	5.09×	3.63×	2.8×	2.94×	4.63×	7.69×	7.44×
Cash conversion cycle (days)	49	54	48	35	31	56	66	67