2 models fit ACV Auctions Inc. Class A Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Gold83
Valued as a growth company: Discounted cash flow and P/E comparison.
ACCE opinionACV Auctions Inc. Class A Common Stock (ACVA)
Fair value (2 models)
$6.51
ACCE price target
$10.50
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 19:04 CEST; previously $5.00 since 7 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $10.50 at the close on 15 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
61.3% above
-38.0% to fair value
ACCE score
48
out of 100
Analysts
20% buy
10 covering
1-year return
+20.1%
Dividend yield
0.00%
ACV Auctions Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
ACV Auctions runs a digital marketplace where dealers and wholesalers buy and sell used vehicles online, earning transaction and listing fees rather than holding inventory. The moat rests on network density: the more dealers and sellers on the platform, the better the clearing prices, and that feedback loop is what the company is trying to defend against rivals like Cox Automotive's Manheim. Revenue is growing 10.4%, with a 26.8% gross margin, but the operating margin is still negative at -2.8% and ROE sits at -15.1%, so the business has not yet converted growth into profit. The 37.3x forward P/E implies the market is pricing in a meaningful earnings ramp, so the case for a deeper look depends on whether operating leverage shows up in the next few reporting periods. The score of 49/100 and absence from any major index reflect that the story is still unproven.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Thin net margins, negative ROE
Net margin is -7.9% and ROE is -15.1%, with operating margin at -2.8%. The business is still losing money at the bottom line despite 26.8% gross margin.
moderate
Earnings flat, revenue rising
Revenue grew 10.4% year over year while earnings growth was 0.0%. Top-line growth is not yet converting into profit.
moderate
Price well above model fair value
The stock trades 61.3% above the model fair value of $6.51. The ACCE price target of $10.50 sits at the current price, so the price already reflects the target.
moderate
Elevated short interest
Short interest stands at 8.4% of the float. That is a meaningful bet against the shares and can add volatility.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 15, 2026
Why it could do well
Free cash flow over the last twelve months reached $69M, showing the business generates real cash despite its GAAP losses.
Revenue grew 10.4% year over year, and the latest quarter beat expected earnings per share by 40.0%.
The stock trades at a forward P/E of 33.9x, but the sector median is 18.0x, so buyers are paying for expected growth.
Why it could disappoint
The share price sits 61.3% above the model fair value of $6.51, and the consensus fair value sits 38.0% below the share price.
Net margin is still negative at -7.9%, and return on equity is -15.1%, so the business does not yet earn a profit on its capital.
Only 20% of analysts rate the stock Buy or Strong Buy, and the analysts' mean price target of $9.00 sits 14.3% below the share price.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where ACVA's valuation models land
Price
$10.50
Model fair value
$6.51
Model range
$3.48 to $9.54
Fair value $6.51
Price $10.50
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
P/E comparison
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Quality
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