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Top 5 Companies in the Automotive Retail Industry With the Highest P/E Ratio (PBY, MNRO, ORLY, KMX, AAP)

By James Quinn

Below are the three companies in the Automotive Retail industry with the highest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

PEP Boys ranks highest with a a P/E ratio of 59.05. Following is Monro Muffler with a a P/E ratio of 39.08. O'Reilly Automotive ranks third highest with a a P/E ratio of 22.96.

Carmax follows with a a P/E ratio of 21.17, and Advance Auto Parts rounds out the top five with a a P/E ratio of 20.28.

SmarTrend recommended that subscribers consider buying shares of Advance Auto Parts on October 1st, 2013 as our technology indicated a new Uptrend was in progress when shares hit $83.27. Since that recommendation, shares of Advance Auto Parts have risen 34.9%. We continue to monitor Advance Auto Parts for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest p/e ratio pep boys monro muffler o'reilly automotive CarMax Advance Auto Parts

Ticker(s): PBY MNRO ORLY KMX AAP