Identifying Comparables and Valuation Using PB and PE

Advanced Auto Parts book value per share is $51.18 and its forward earnings estimate per share is $7.90. The following information is also available for Advanced Auto Parts and a peer group of companies from the auto parts sector.

Ticker			Market Cap ($ mil)	PB Current	Forward PE (FY1)	EPS 5-Year Historical Growth Rate	ROE (T 4Q)
Advanced Auto Parts (AAP)			11,110	3.03	19.71	1.6%	11.39%
AutoZone (AZO)			28,440	17.89	17.78	5.7%	91.32%
CarMax (KMX)			14,010	4.06	16.06	11.3%	25.44%
America's Car-Mart (CRMT)			18,920	2.27	12.01	17.6%	20.72%
Copart Inc. (CPRT)			18,920	10.64	31.34	27.1%	36.48%
O'Reilly Auto Parts (ORLY)			30,520	210.93	22.73	14.6%	282.30%
US Auto Parts Network (PRTS)			59	1.63	21.30	(20.7)%	(25.93)%
Gentex (GNTX)			7,062	3.71	16.55	14.5%	22.95%

b. Assume that you use as comparables the following set of companies: KMX, CRMT, and GNTX. Estimate Advanced Auto Parts equity intrinsic value per share using the PB ratio from these peer companies.

Round answer to two decimal places.

$Answer

c. Use the same comparables as in part b and estimate Advanced Auto Parts equity intrinsic value per share using the PE ratio from these peer companies.

Round answer to two decimal places.

$Answer