Genuine Parts (GPC) Valuation Check As Leadership Transition To Combined Chairman And CEO Role Approaches

Genuine Parts (GPC) has scheduled a future leadership change, with Non Executive Chairman Paul D. Donahue set to retire in 2026 and current CEO Will Stengel slated to assume the combined Chairman and CEO role. See our latest analysis for Genuine Parts. The leadership timeline sits against a share price of $133.8, with a 7.90% year to date share price return and a 17.66% one year total shareholder return. This suggests momentum has been building recently, despite a weaker three year total shareholder return of a 12.27% decline. If this governance shift has you reviewing your watchlist, it could be a good moment to widen your search and check out auto manufacturers. So with Genuine Parts trading at $133.8, sitting at a 9% discount to analyst price targets and a 33% discount to one intrinsic estimate, is the market offering a mispriced entry or already accounting for potential future growth? Most Popular Narrative: 8.4% Undervalued With Genuine Parts last closing at US$133.80 against a narrative fair value of US$146.11, the current setup leans toward upside in that framework. Execution of global supply chain optimization, pricing strategies, and recent restructuring initiatives is expected to generate over $200 million in annualized cost savings by 2026, supporting future net margin expansion and enhancing long-term earnings power. Read the complete narrative. Curious what kind of revenue growth, margin uplift and future P/E multiple are baked into that fair value? The full narrative lays out a detailed earnings bridge, step by step. Result: Fair Value of $146.11 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear swing factors here, including persistent cost inflation pressuring margins and slower European markets that are weighing on the international growth push. Find out about the key risks to this Genuine Parts narrative. Another View: Valuation Through The P/E Lens The narrative fair value points to Genuine Parts as undervalued, but the earnings multiple paints a tighter picture. At a P/E of 23x versus a fair ratio of 18.2x and a global Retail Distributors average of 18.3x, the shares look fully valued. Is the discount to fair value really as wide as it seems? See what the numbers say about this price — find out in our valuation breakdown. NYSE:GPC P/E Ratio as at Jan 2026 Build Your Own Genuine Parts Narrative If you see the assumptions differently, or prefer to test the numbers yourself, you can build a personalized Genuine Parts view in minutes by starting with Do it your way. A great starting point for your Genuine Parts research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Genuine Parts has sharpened your interest, do not stop here. Use the screener to hunt for other opportunities that could suit your style and goals. Target potential mispricing by scanning these 886 undervalued stocks based on cash flows that share strong cash flow support for their current market prices. Ride emerging tech themes by checking out these 25 AI penny stocks that are building tools and services around artificial intelligence. Turn income into your focus by reviewing these 12 dividend stocks with yields > 3% that offer yields above 3% with listed payout profiles. 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.