2 models fit Group 1 Automotive Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Bronze43
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionGroup 1 Automotive Inc. Common Stock (GPI)
Fair value (2 models)
$467
ACCE price target
$265
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $343 since 30 Sept 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $245 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
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
47.6% below
+90.7% to fair value
ACCE score
39
out of 100
Analysts
67% buy
12 covering
P/E
10.1x
forward 5.7x
1-year return
-43.2%
Dividend yield
0.04%
Group 1 Automotive Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Group 1 Automotive runs a network of franchised new and used car dealerships across the US, the UK and Brazil, with a large parts, service and finance and insurance (F&I) business that carries far higher margins than vehicle sales. The structural case rests on that aftermarket mix: service and parts revenue is recurring and tends to hold up when new-vehicle volumes soften, and the franchise model gives the company manufacturer relationships that are hard for independents to replicate. The near-term catalyst is a normalisation in new-vehicle affordability and inventory, which would lift unit volumes and the F&I income attached to each sale. The stock is interesting now mainly on valuation: it trades at 10.0x trailing and 5.7x forward earnings, yet revenue is down 5.6% and operating margin is only 3.8%, so the discount reflects a cyclical earnings trough that the market is not yet willing to call a bottom. The score of 39/100 and absence from major indices mean this is a name that needs a deeper look at margin recovery and cash conversion before any conclusion is reached.