Assessing Asbury Automotive Group’s Valuation as Long-Planned CEO Succession to Daniel Clara Takes Shape

Asbury Automotive Group (ABG) just put its long running succession plan into motion, confirming that veteran CEO David Hult will shift to Executive Chairman while COO Dan Clara takes over as President and CEO after the 2026 meeting. See our latest analysis for Asbury Automotive Group. The leadership handover lands at a time when Asbury’s share price has been treading water near $237.78, with a modest 1 month share price return but a much stronger 3 year total shareholder return. This suggests long term momentum is intact even as the market reassesses near term execution risk. If this planned transition has you thinking about what else is changing across auto retail, it could be worth exploring auto manufacturers as potential next ideas. With shares trading just below analyst targets yet at a steep discount to some intrinsic value estimates, is Asbury quietly undervalued ahead of its leadership reset, or is the market already accounting for the next phase of growth? Most Popular Narrative Narrative: 9.2% Undervalued With Asbury Automotive Group last closing at $237.78 against a narrative fair value of $261.75, the story points to upside that hinges on execution. The acquisition of Herb Chambers expands Asbury's presence in a stable, affluent market (New England) with a high mix of luxury brands, expected to further boost average transaction values and provide earnings resilience, supporting future revenue and margin growth. Read the complete narrative. Curious how steady margins, measured revenue growth, and a restrained earnings multiple can still point to meaningful upside? The full narrative unveils the math behind that gap. Result: Fair Value of $261.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, elevated leverage from recent acquisitions and slower-than-hoped digital adoption could weigh on profitability, testing confidence in the undervaluation thesis. Find out about the key risks to this Asbury Automotive Group narrative. Build Your Own Asbury Automotive Group Narrative If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way. A great starting point for your Asbury Automotive Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Looking for your next smart move? Do not stop at one opportunity. Use the Simply Wall St Screener to uncover focused ideas that could sharpen your portfolio and keep you ahead of the crowd. Capitalize on mispriced opportunities by targeting companies that look cheap on cash flows through these 894 undervalued stocks based on cash flows tailored to value focused investors. Ride the structural shift toward automation and machine intelligence by zeroing in on these 27 AI penny stocks positioned to benefit from rapid adoption. Boost potential income streams by filtering for reliable payers with these 15 dividend stocks with yields > 3% and avoid missing stocks that might strengthen your yield. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.