TacticScaleWhat Asbury Automotive Does & How It Makes Money (ABG)
Updated October 2026 · reflects Asbury Automotive's latest reported financials
U.S. auto retailer selling new and used cars plus service. It earns money from margins on new and used vehicle sales, along with higher-margin parts, service and collision repair work.
How Asbury Automotive makes money
It earns money from margins on new and used vehicle sales, along with higher-margin parts, service and collision repair work. It also earns fees and commissions for arranging third-party financing and selling aftermarket contracts such as extended service plans and GAP protection.
What Asbury Automotive does
Asbury Automotive Group is a U.S. automotive retailer that operates through two segments: its Dealerships and Total Care Auto, Powered by Asbury (TCA). Its dealerships sell new and used vehicles to individual customers and also sell to other dealers, licensed wholesalers and at auctions. Beyond vehicle sales, Asbury earns revenue from repair and maintenance, replacement parts, collision repair, and reconditioning used cars. Its finance and insurance business arranges loans through third parties and sells aftermarket products such as extended service contracts, GAP debt cancellation, prepaid maintenance, key replacement, dent repair, appearance protection, tire and wheel, and lease wear-and-tear coverage. Founded in 1996, the company is headquartered in Atlanta, Georgia.
Products & services
- New vehicle sales
- Used vehicle sales
- Parts, service and collision repair
- Vehicle financing arrangement (F&I)
- Extended service contracts and GAP protection
- Total Care Auto, Powered by Asbury (TCA)
What is Asbury Automotive worth?
On an owner-earnings DCF, Asbury Automotive's most-likely value is about $295 versus a recent price near $168 (76% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$188) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $168 is below even the no-growth floor ($188); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -1.7%/yr. A bargain only if that pessimism is overdone.
⚠ High leverage — net debt is 10.9× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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