AutoZone, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $2.0B normalized FCF base (vs. TTM FCF of $1.63B, adjusted modestly upward toward TTM net income of $2.57B to reflect underlying earnings power); 6% annual FCF growth for years 1-5; 4% for years 6-10; 8.5% discount rate; 3% terminal growth; $12.54B net debt; 16.17M shares outstanding.

Reasoning: AutoZone is a highly consistent, high-margin auto-parts retailer that funds aggressive share buybacks with debt, which mechanically depresses per-share free cash flow while share count shrinks; a normalized FCF base close to net income better reflects steady-state earning power, and its large net debt, a deliberate capital-structure choice rather than distress, is subtracted to reach equity value on its very small share count.