What Is AZO Fair Value?
AutoZone (AZO) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, AutoZone (AZO) has a composite fair value estimate of $4,022.17 based on four valuation models: DCF (58% weight), Graham Number (0% weight), PEG (42% weight), and DDM (0% weight). The current market price is $2,961.96, suggesting the stock is undervalued by 35.8%.
Data as of August 29, 2026 (today)
Composite Fair Value
Undervalued2 of 4 models$4,022.17
vs. current price of $2,961.96(+35.8%)
How Is AZO Fair Value Calculated?
Four independent models estimate what AZO is worth. Each uses different inputs and assumptions. The composite blends them by weight.
AZO Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
58% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$4,935.13
+66.6%Undervalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
AZO Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
0% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
N/A
Requires positive EPS and book value. AutoZone currently has negative earnings, so the Graham formula cannot be applied.
Inputs used
PEG (Price/Earnings to Growth)
42% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$1,524.76
-48.5%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $2961.96 is 66.6% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.06B | $1.95B |
| Year 2 | $2.27B | $2.03B |
| Year 3 | $2.50B | $2.11B |
| Year 4 | $2.75B | $2.19B |
| Year 5 | $3.03B | $2.28B |
| Year 6 | $3.34B | $2.37B |
| Year 7 | $3.67B | $2.46B |
| Year 8 | $4.04B | $2.56B |
| Year 9 | $4.45B | $2.66B |
| Year 10 | $4.90B | $2.77B |
| Terminal Value | $149.01B | $84.22B |
What Are AZO's Key Financial Metrics?
Earnings & Growth
Current Price
$2,961.96
EPS (TTM)
$146.91
Forward P/E
16.9
Profit Margin
12.4%
Cash & Balance Sheet
Free Cash Flow
903.8M
EBITDA
4.3B
Book Value
-$170.11
Total Debt
13.1B
What Do Analysts Say About AZO?
Low
$3,200.00
Average
$3,950.52
High
$4,800.00
Upside
+33.4%
AZO Fair Value FAQ
What is the fair value of AZO?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), AZO's estimated fair value is $4,022.17. The stock is currently trading at $2,961.96, which makes it undervalued by our analysis.
How is AZO's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is AZO overvalued or undervalued?
Based on our analysis, AZO is undervalued. The current price of $2,961.96 is 35.8% below our estimated fair value of $4,022.17.
What do Wall Street analysts say about AZO?
23 analysts cover AutoZone with a consensus rating of "Strong Buy." The average price target is $3,950.52, ranging from $3,200.00 to $4,800.00. This implies 33.4% upside from the current price.