Skip to content
Compounder
← Stocks

Asbury Automotive Group

ABGBelow value

Held by 2 superinvestors.

Price$209.89
Holders2
Total value$435.5M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+4.7%
Net margin
2.7%
ROE
12.6%
FCF margin
—
Revenue $7.13B → $18.00B · 6y
What makes a business high quality

Valuation · value band

Margin of safety

$232/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$210
cheaperpricier

Zero-growth floor

$144

Central IV

$232

Optimistic top

$267

Asbury Automotive Group (ABG): A conservative value band $144–$267 / sh (zero-growth floor to growth-capped optimistic top); central read about $232. Today’s price sits below that band (price $210 as of 2026-08-26).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

  • Recent earnings are below the multi-year average, so the band uses the lower run-rate.

Revenue growth 0% (history declining, capped at zero) · moat 10 yr · discount 12.0% · Zero-growth downside $144

Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.

Method & numbers

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $207.40 – $263.05 · Greenwald zero-growth $267.09 · zero-growth base $267.09 · reproduction $90.36

Moat Franchise (via earnings growth) · terminal value 32% of present value · owner-earnings yield 13% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$144.19 – $212.42 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex unavailable → degraded to the v1 simplification (maintenance capex = D&A, so the depreciation add-back nets to zero). Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).

Buffett owner-earnings value$224.09 – $267.09 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 10.4–12.4% band (9–11% base + 1.4pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Maintenance capex or D&A unavailable → degraded to normalized net income (= average net income over the years shown). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 1.4pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 5.8 years of owner earnings, adding 1.4pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $1.65B = $90.36 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value gated to zero — franchise via earnings-growth bypass; growth credit stays in the owner-earnings DCF only.

Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 5.8 years of owner earnings → +1.4pp cost-of-equity premium → effective 10.4%–12.4%.

Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 10.58%–13.42% (DGS10 +4.5% to a 12% strict end, each +1.42pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about -2.0% a year in owner-earnings for the next few years. Revenue actually grew 19.6% a year.

Below what it has already done.

Roughly, the price needs its historical revenue growth to run about 1 more years to hold up.

Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

2 holders · $435.5M combined · this quarter +0 opened / -0 exited

This quarter1 added
Holders 2 → 2 · last 8q

SEC 13F · notes

Written summary

Asbury Automotive Group (ABG) is held by 2 of the superinvestors tracked on Compounder, with a combined $435.5M in reported 13F value. The largest position belongs to David Abrams, where it makes up 7.9% of the portfolio.

Other notable holders by value include Tweedy, Browne (0.2% of its book).

Over the latest quarter, 0 of the tracked filers opened a new position in ABG, 1 added to existing ones, 0 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Asbury Automotive Group (ABG) also commonly hold →

See which stocks look cheap against a conservative value band. Browse all valued stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-13

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

Stay Updated

New-quarter 13F moves and valuation updates, to your inbox.