Market Pulse50Neutral

O'Reilly Automotive, Inc.Opportunity Rank #125(ORLY) Intrinsic Value & DCF Analysis (2026)

Current Price

$88.70

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$88.70
Price
$86.22
Intrinsic Value
Overvalued by 3%MOS: $68.98

Fundamental Score

64/100
Neutral

Weighted across 6 signals

Narrative Score

65/100
Improving

No change vs previous

The intrinsic value of O'Reilly Automotive, Inc. (ORLY) is estimated at $86.22 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.70, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.51% long-term growth rate and an 8.50% discount rate (calculated: 7.45%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of O'Reilly Automotive, Inc. (ORLY) is estimated at $86.22 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $88.70, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 5.51% long-term growth rate and an 8.50% discount rate (calculated: 7.45%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$86.22
-2.80% downside
20% margin of safety: $68.98
Years: 10Growth Rate: 5.51%
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Capital Efficiency

Average Quarterly ROIC
14.85%
Cost of Capital (estimated)7%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

64/100
NeutralWeighted across 6 signals
DCF Discount
2.8% premium to price
45
FCF Yield
5.3% trailing FCF yield
81
ROIC vs WACC
ROIC 14.9% vs WACC 7.0% (2.1x)
100
Net Debt / FCF
1.5x net debt to FCF
46
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
3.5% 5Y FCF CAGR
25
Strengths: FCF Yield, ROIC vs WACC. Concerns: FCF CAGR (5Y).

Narrative Details

65/100
Improving
Vs 6-Month Baseline:High (90th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 87%Updated: 1h ago
Sources: 48 (38 News · 10 Analyst)
Drivers(last 30 days)
21 regulatory scrutiny+1.3
15 news sentiment+0.2
Margin pressure-0.0
Earnings miss+0.0
10 analyst reiterations0.0

Investment Coach

Updated 16h ago
BUYConfidence: 63%
Thesis
O'Reilly Automotive, Inc. demonstrates strong fundamentals with a ROIC significantly exceeding its cost of capital by 7.85 percentage points and a healthy free cash flow yield of 5.3%, supporting a bullish investment stance. The company's narrative score is strong and stable, indicating positive market perception and operational performance.
Key Risk
A key risk is if the ROIC falls below the cost of capital in upcoming quarters, which could undermine the company's profitability and valuation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value.
  • ROIC staying above cost of capital over coming quarters.
  • Meaningful shifts in the narrative score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 5.51%5 Year CAGR: 1.49%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$3,931$3,931$4,073$4,040$3,712$3,650$3,302$2,337$2,232$1,870$1,987$1,760$1,620$1,304$1,552$1,447$1,069$700$640$582$415

How Intrinziq Estimates Fair Value

Intrinziq estimates O'Reilly Automotive, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

O'Reilly Automotive, Inc.Consumer Cyclical

O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Its stores offer do-it-yourself and professional service provider customers a selection of products for domestic and imported automobiles, vans, and trucks. As of December 31, 2021, the company owned and operated 5,759 stores in the United States, and 25 stores in Mexico. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.