GPI
Group 1 Automotive, Inc. (GPI)
Last Price$450.6(1.9%)
Market Cap$6,102.5M
DCF value
$358.1
Overvalued (DCF value)
(20.5%)
Discount Rate
6.0%
Long-Term Growth Rate
2.5%
Stock quality
6/10
Good

GPI DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
10,851.8
(9.9%)
13,481.9
24.2%
16,222.1
20.3%
17,873.7
10.2%
19,934.3
11.5%
21,783.8
9.3%
22,742.7
4.4%
23,690.0
4.2%
24,627.4
4.0%
25,550.7
3.7%
26,455.3
3.5%
27,337.0
3.3%
28,191.1
3.1%
29,013.2
2.9%
29,799.0
2.7%
30,543.9
2.5%
486.1
4.5%
884.4
6.6%
1,091.4
6.7%
968.6
5.4%
909.1
4.6%
1,127.5
5.2%
1,177.2
5.2%
1,226.2
5.2%
1,274.7
5.2%
1,322.5
5.2%
1,369.3
5.2%
1,415.0
5.2%
1,459.2
5.2%
1,501.7
5.2%
1,542.4
5.2%
1,581.0
5.2%
NOPAT
% effective tax rate
376.1
3.5%
690.6
5.1%
835.4
5.1%
728.7
4.1%
686.1
3.4%
851.0
3.9%
888.5
3.9%
925.5
3.9%
962.1
3.9%
998.2
3.9%
1,033.5
3.9%
1,067.9
3.9%
1,101.3
3.9%
1,133.4
3.9%
1,164.1
3.9%
1,193.2
3.9%
% of revenue
97.5
0.9%
102.4
0.8%
117.9
0.7%
92.0
0.5%
113.1
0.6%
131.3
0.6%
137.1
0.6%
142.8
0.6%
148.5
0.6%
154.1
0.6%
159.5
0.6%
164.8
0.6%
170.0
0.6%
174.9
0.6%
179.7
0.6%
184.2
0.6%
% of revenue
(103.2)
(1.0%)
(143.6)
(1.1%)
(155.5)
(1.0%)
(185.4)
(1.0%)
(245.1)
(1.2%)
(234.2)
(1.1%)
(244.5)
(1.1%)
(254.7)
(1.1%)
(264.8)
(1.1%)
(274.7)
(1.1%)
(284.4)
(1.1%)
(293.9)
(1.1%)
(303.1)
(1.1%)
(311.9)
(1.1%)
(320.4)
(1.1%)
(328.4)
(1.1%)
336.8
3.1%
462.5
3.4%
(310.3)
(1.9%)
(573.7)
(3.2%)
(80.6)
(0.4%)
(401.3)
(1.8%)
(419.0)
(1.8%)
(436.4)
(1.8%)
(453.7)
(1.8%)
(470.7)
(1.8%)
(487.4)
(1.8%)
(503.6)
(1.8%)
(519.4)
(1.8%)
(534.5)
(1.8%)
(549.0)
(1.8%)
(562.7)
(1.8%)
Free Cash Flow to Firm (FCFF)
% of revenue
707.2
6.5%
1,111.9
8.2%
487.5
3.0%
61.6
0.3%
473.5
2.4%
346.8
1.6%
362.1
1.6%
377.2
1.6%
392.1
1.6%
406.8
1.6%
421.2
1.6%
435.2
1.6%
448.8
1.6%
461.9
1.6%
474.4
1.6%
486.3
1.6%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.92
0.86
0.82
0.77
0.73
0.68
0.65
0.61
0.57
Discounted FCFF (DFCFF)
279.6
331.7
325.9
319.6
312.7
305.4
297.7
289.6
281.1
272.3

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GPI DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
3,015.8M
30.0%
Terminal Value (TV)
12.3B
Discounted TV
% share of EV
7,036.8M
70.0%
Total Debt
5,237.2M
4,849.7M
Shares outstanding
13.5M
FX rate
1.0
20.5% overvalued

Equity Value Bridge

GPI DCF Financials

Revenue
$19.9B -> $29.8B 4.1% CAGR
Operating Income
$909.1M -> $1,542.4M 5.4% CAGR
FCFF
$473.5M -> $474.4M 0.0% CAGR

GPI DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
5.0%
$394.0
$394.0
$394.0
$394.0
$394.0
5.5%
$376.0
$376.0
$376.0
$376.0
$376.0
6.0%
$295.0
$352.0
$358.0
$358.0
$358.0
6.5%
$228.0
$272.0
$327.0
$342.0
$342.0
7.0%
$172.0
$206.0
$248.0
$301.0
$326.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
5.0%
(13.0%)
(13.0%)
(13.0%)
(13.0%)
(13.0%)
5.5%
(17.0%)
(17.0%)
(17.0%)
(17.0%)
(17.0%)
6.0%
(35.0%)
(22.0%)
(21.0%)
(21.0%)
(21.0%)
6.5%
(49.0%)
(40.0%)
(27.0%)
(24.0%)
(24.0%)
7.0%
(62.0%)
(54.0%)
(45.0%)
(33.0%)
(28.0%)

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FAQ

What is Group 1 Automotive, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Group 1 Automotive, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $358.1. This suggests it may be overvalued by (20.5%) compared to its current price of around $450.6, using a WACC of 6.0% and growth rates of 2.5%.

What is Group 1 Automotive, Inc. WACC?

As of Mar 03, 2025, Group 1 Automotive, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 6.0%.

What is Group 1 Automotive, Inc. Enterprise Value?

As of Mar 03, 2025, Group 1 Automotive, Inc.'s Enterprise Value (EV) is approximately $10.1B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.