3 models fit Credit Acceptance Corporation Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Silver60
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionCredit Acceptance Corporation Common Stock (CACC)
Fair value (3 models)
$814
ACCE price target
$580
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $468 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $545 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, 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
33.0% below
+49.3% to fair value
ACCE score
75
out of 100
Analysts
0% buy
3 covering
P/E
12.0x
forward 9.9x
1-year return
+9.0%
Dividend yield
0.00%
Credit Acceptance Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Credit Acceptance makes its money by buying subprime auto loans from dealers and servicing them over their life, mostly in the US, with the loans sitting on its own balance sheet rather than being sold off. That model rewards disciplined underwriting and collections more than volume, and the 31.9% ROE and 52.6% operating margin in the data reflect how much of the spread the company keeps once those loans are booked. Revenue growth of 9.5% is respectable for a business that shrinks its loan book when credit tightens, so the question is whether that growth is durable or a product of a benign credit cycle. At 12.0x trailing and 10.3x forward earnings, the stock is priced for skepticism about exactly that, and the 76/100 score says the financials are strong enough to justify a closer look at loan performance and capital returns before we take a view.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Heavy short interest
28.1% of shares are sold short, a large bearish position that signals meaningful skepticism about the business and can amplify volatility.
moderate
Score slipping over 90 days
The ACCE score fell from 82 to 75 over 90 days, with Momentum at 63, the weakest component, suggesting weakening trend support.
moderate
Leverage and insider selling
Debt to equity is 4.17 and insiders sold $7.32M in the last 10 disclosed transactions with no buys, a pattern worth weighing alongside the high leverage.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $1.1B, and the stock's free cash flow yield is 18.8%.
Return on equity of 31.9% and a net margin of 38.5% show the business turns capital into profit very efficiently.
The share count fell 9.5% last fiscal year, which lifts each remaining shareholder's claim on earnings.
Why it could disappoint
Return on invested capital is only 4.4%, far below the 31.9% return on equity, which suggests borrowing is doing much of the work.
Debt to equity of 4.17 leaves little cushion if subprime auto loan performance deteriorates.
Revenue growth of 9.5% sits above the 6.8% five-year average, so the recent pace may not last.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 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 CACC's valuation models land
Price
$545.04
Model fair value
$814
Model range
$349 to $1450
Fair value $814
Price $545
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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