Autozone Inc (AZO) is fairly valued and O'Reilly Automotive Inc (ORLY) is overvalued.
Against our estimates of intrinsic value, AZO trades at the wider discount: a margin of safety of +3%, against -51% for ORLY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $2980.07; the price of $2894.73 is 3% below that value, and 81% of that value comes from beyond year five.
Leak Score 53/100 on 8 of 12 signals
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $56.94; the price of $85.82 is 51% above that value, and 79% of that value comes from beyond year five.
Leak Score 54/100 on 8 of 12 signals
| Metric | AZO | ORLY |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $2894.73 | $85.82 |
| Intrinsic value | $2980.07 | $56.94 |
| Margin of safety | +3% | -51% |
| Leak Score | 53/100 (8/12) | 54/100 (8/12) |
| Market cap | $47.3B | $69.4B |
| Revenue growth, 5 years | 6.8% | 8.9% |
| Operating margin | 18.3% | 19.6% |
| Net margin | 12.7% | 14.3% |
| P/E | 18.9x | 27.3x |
| Forward P/E | 14.7x | 23.4x |