Advance Auto Parts (NYSE:AAP) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Advance Auto Parts Forward PE Ratio Related Terms
Advance Auto Parts Forward PE Ratio Historical Data
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The historical data trend for Advance Auto Parts's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Advance Auto Parts Forward PE Ratio Chart
Advance Auto Parts Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
15.95
21.93
16.53
19.46
17.57
16.47
18.98
11.15
17.64
25.86
15.33
Advance Auto Parts Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-04
Forward PE Ratio
15.95
16.31
19.61
18.25
21.93
19.46
16.34
15.27
16.53
17.73
20.37
21.19
19.46
21.10
18.87
17.57
17.57
10.79
21.10
15.95
16.47
19.05
20.20
17.21
18.98
15.90
13.33
10.99
11.15
11.39
8.96
10.15
17.64
22.62
17.39
12.35
25.86
25.18
24.76
21.73
15.33
18.58
21.33
AAP vs DORM, ATMU, DAN: Forward PE Ratio Comparison
For the Auto Parts subindustry, Advance Auto Parts's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advance Auto Parts Forward PE Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Advance Auto Parts (AAP) has a Forward PE Ratio of 19.57 as of Jun. 25, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Advance Auto Parts and its competitors. According to the industry distribution chart, Advance Auto Parts ranks #409 out of 593 companies in the Vehicles & Parts industry, placing it in the top 69%.
Is Advance Auto Parts' Forward PE Ratio too high?
Advance Auto Parts' current Forward PE Ratio is 19.57. The Vehicles & Parts industry median Forward PE Ratio is 13.05. Advance Auto Parts' value of 19.57 is 50% above this industry median. Based on the distribution chart, Advance Auto Parts ranks #409 out of 593 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Advance Auto Parts has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Forward PE Ratio compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #409 out of 593 companies for Forward PE Ratio. This places Advance Auto Parts in the lower half of its industry. The industry median Forward PE Ratio is 13.05. Advance Auto Parts' value of 19.57 is 50% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Vehicles & Parts company?
The median Forward PE Ratio among Vehicles & Parts companies is 13.05, based on 593 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Forward PE Ratio of 19.57 is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Forward PE Ratio is 13.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Forward PE Ratio is 19.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (AAP) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.12, compared to a current price of $57.94 — trading 11.2% above its estimated fair value. The current Forward PE Ratio is 19.57 and 50% above the Vehicles & Parts industry median of 13.05. Advance Auto Parts' overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current Forward PE Ratio is 19.57 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advance Auto Parts (AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of $57.94 is trading 11.2% above its estimated GF Value™ of $52.12.
GuruFocus considers Advance Auto Parts to be Modestly Overvalued.
Key valuation signals for AAP:
Forward PE Ratio: 19.57
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 50% above the Vehicles & Parts median (#409 of 593)
No single metric tells the full story. See the AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
69GF Score
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