O'Reilly Automotive, Inc. (ORLY) 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

-8.3%

$82.60

vs $90.09 price

Levered DCF

$86.14

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.58

Safe zone

Rating

C+

Overall 2 / 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	30.61×	29.17×	23.55×	24.05×	21.6×	18.28×	23.38×	20.32×
P/B	-101.74×	-48.36×	-31.73×	-49.23×	-704.85×	228.81×	81.72×	76.31×
P/S	4.37×	3.97×	3.49×	3.62×	3.51×	2.77×	3.2×	2.83×
EV / EBITDA	21.56×	19.95×	17.36×	17.7×	16.08×	13.78×	17.4×	14.64×
Gross margin	51.6%	51.2%	51.3%	51.2%	52.7%	52.4%	53.1%	52.8%
Operating margin	19.5%	19.5%	20.2%	20.6%	22.0%	20.9%	18.9%	19.0%
Net margin	14.3%	14.3%	14.8%	15.1%	16.2%	15.1%	13.7%	13.9%
Current ratio	0.77×	0.71×	0.73×	0.71×	0.77×	0.86×	0.86×	0.91×
Debt / equity	-11.12×	-5.78×	-4.51×	-6.17×	-88.32×	43.95×	14.75×	9.66×
Interest coverage	14.72×	14.61×	15.81×	18.78×	20.24×	15.04×	13.74×	14.86×
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	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-332.5%	-174.1%	-134.9%	-204.8%	-3258.9%	1249.3%	350.1%	374.5%
Return on invested capital	33.1%	36.3%	37.7%	38.8%	36.9%	28.1%	22.8%	34.7%
Return on assets	15.3%	16.0%	16.9%	17.2%	18.5%	15.1%	13.0%	16.6%
Free cash flow yield	2.1%	3.1%	3.7%	5.0%	5.9%	7.4%	3.3%	4.5%
Earnings yield	3.3%	3.6%	4.3%	4.2%	4.6%	5.5%	4.3%	4.9%
Enterprise value	$86B	$74.1B	$62.8B	$58.7B	$52.3B	$37.8B	$38.3B	$30.4B
Net debt / EBITDA	2.08×	2.1×	2.09×	1.94×	1.69×	2.08×	2.64×	1.63×
Cash conversion cycle (days)	-47	-53	-56	-67	-48	-25	-1	-5