Autonation Inc (AN) is undervalued and Carvana Co (CVNA) is overvalued.
Against our estimates of intrinsic value, AN trades at the wider discount: a margin of safety of +35%, against -45% for CVNA.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.6% (average of 3 methods) values the shares at $261.45; the price of $169.61 is 35% below that value, and 84% of that value comes from beyond year five.
Leak Score 86/100 on 3 of 12 signals
Discounting its cash flows at 10.8% (average of 3 methods) values the shares at $45.06; the price of $65.40 is 45% above that value, and 72% of that value comes from beyond year five.
Leak Score 57/100 on 8 of 12 signals
| Metric | AN | CVNA |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $169.61 | $65.40 |
| Intrinsic value | $261.45 | $45.06 |
| Margin of safety | +35% | -45% |
| Leak Score | 86/100 (3/12) | 57/100 (8/12) |
| Market cap | $5.6B | $72.0B |
| Revenue growth, 5 years | 6.3% | 29.5% |
| Operating margin | 4.7% | 8.9% |
| Net margin | 2.8% | 6.3% |
| Return on equity | 32.8% | 54.5% |
| Debt to equity | 5.02 | 1.44 |
| P/E | 7.9x | 30.3x |
| Forward P/E | 6.8x | 29.6x |
| P/B | 2.5x | 11.7x |