Advance Auto Parts (AAP) Valuation: Is the Market Mispricing the Retail Repair Project?

Advance Auto Parts (AAP) adds former Foot Locker CEO Richard Johnson to its board, bringing retail and multi-board experience to the aftermarket auto parts business. Shares trade at $42.88 with a 7-day return of 4.03%, a 90-day return decline of 19.96%, and a 5-year total shareholder return loss of 70.78%. The consolidation of distribution centers and new market hub stores aims to enhance supply chain efficiency and improve gross margins. However, weak early 2025 sales and store closures could slow the repair story. The SWS DCF model estimates a fair value of $6.94, implying a large premium over the current price.