ACV Auctions Inc.

ACVA

Consumer CyclicalAuto - DealershipsNYSE

$6.41

Market Cap: $1.12B

ACV Auctions Inc. (ACVA) Valuation Summary

Updated May 11, 2026 21:12

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.62 – $24.15	$7.34	+14.6%
Revenue DCF 10Y	$0.75 – $33.42	$9.87	+54.0%
▸ Trading Multiples
EV/Revenue	$5.11 – $12.90	$7.49	+16.8%

Valuation History

DCF Analysis

ACV Auctions Inc. (ACVA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$9.87

Market Price

$6.41

Upside / Downside

+54.0%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -8.1% to a target of 7.7% over 5 years, discounted at a WACC of 7.8%, ACV Auctions Inc. (ACVA) has an intrinsic value of $9.87 per share (range: $0.75 – $33.42).

Key Assumptions

Current Operating Margin

-8.1%

Target Operating Margin

7.7%

WACC

7.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

6.2%

D&A/Revenue

4.1%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	850	11.9%	-5.0%	-42	-42	35	(32)	40	-79	-76
2027	958	12.8%	-1.8%	-17	-17	40	(38)	-20	4	3
2028	1,094	14.1%	1.4%	15	12	45	(47)	-24	35	29
2029	1,172	7.2%	4.5%	53	42	48	(53)	-14	51	39
2030	1,300	10.9%	7.7%	100	79	54	(63)	-23	93	67
2031	1,530	17.7%	7.7%	118	93	63	(78)	-42	120	79
2032	1,756	14.8%	7.7%	136	107	73	(94)	-41	126	77
2033	1,963	11.8%	7.7%	152	120	81	(111)	-38	127	72
2034	2,138	8.9%	7.7%	165	130	88	(127)	-32	124	65
2035	2,265	5.9%	7.7%	175	138	94	(141)	-23	114	56

Enterprise Value Bridge

Sum of PV(FCFF)413

Terminal Value (Gordon Growth at 3.0%)2,436

PV of Terminal Value1,190

Enterprise Value1,603

(–) Net Debt-81

Equity Value1,684

(÷) Shares Outstanding171

Fair Value per Share$9.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
5.8%	$2	$10	$17	$25	$33
6.8%	$1	$7	$13	$18	$24
7.8%	$1	$5	$10	$14	$19
8.8%	$1	$4	$8	$12	$15
9.8%	$1	$4	$7	$10	$13

Current price: $6.41. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -18.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

ACV Auctions Inc. (ACVA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.34

Market Price

$6.41

Upside / Downside

+14.6%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-8.1%

Target Operating Margin

7.7%

WACC

7.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

6.2%

D&A/Revenue

4.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	850	11.9%	-5.0%	-42	-42	35	(34)	40	-81	-78
2027	958	12.8%	-1.8%	-17	-17	40	(44)	-20	-1	-1
2028	1,094	14.1%	1.4%	15	12	45	(56)	-24	26	21
2029	1,172	7.2%	4.5%	53	42	48	(66)	-14	38	30
2030	1,300	10.9%	7.7%	100	79	54	(81)	-23	75	54

Enterprise Value Bridge

Sum of PV(FCFF)25

Terminal Value (Gordon Growth at 3.0%)1,609

PV of Terminal Value1,146

Enterprise Value1,171

(–) Net Debt-81

Equity Value1,253

(÷) Shares Outstanding171

Fair Value per Share$7.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
5.8%	$2	$8	$13	$19	$24
6.8%	$1	$5	$9	$13	$18
7.8%	$1	$4	$7	$10	$14
8.8%	$1	$3	$6	$9	$11
9.8%	$1	$3	$5	$7	$9

Current price: $6.41. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$7.49

Market Price

$6.41

Upside / Downside

+16.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), ACV Auctions Inc. (ACVA) has a fair value of $7.49 based on 8 comparable companies in the Auto - Dealerships industry.

EV/Revenue Valuation — Auto - Dealerships

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
ACV Auctions Inc.ACVA	1,093	1.3x	1.2x
Blue Bird CorporationBLBD	2,248	1.4x	1.2x
Monarch Casino & Resort, Inc.MCRI	2,105	3.7x	3.9x
Albany International Corp.AIN	1,774	1.8x	1.7x
Polestar Automotive Holding UK PLCPSNY	1,401	2.8x	1.5x
The Wendy's CompanyWEN	1,324	2.4x	2.3x
Papa John's International, Inc.PZZA	1,080	1.0x	1.0x
MasterBrand, Inc.MBC	975	0.8x	0.8x
Newegg Commerce, Inc.NEGG	535	0.4x	0.3x
Industry Median		1.6x	1.4x
(*) Revenue		760	850
= Enterprise Value		1,221	1,171
(-) Net Debt		-81	-81
Equity Value		1,302	1,252
(/) Outstanding shares		171	171
Fair Price		$8	$7

Selected Fair Value (avg of trailing + forward)

$7.49

+16.8%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.62 – $24.15

$7.34

+14.6%

Revenue DCF 10Y

$0.75 – $33.42

$9.87

+54.0%

▸ Trading Multiples

EV/Revenue

$5.11 – $12.90

$7.49

+16.8%

DCF Analysis

ACV Auctions Inc. (ACVA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$9.87

Market Price

$6.41

Upside / Downside

+54.0%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-8.1%

Target Operating Margin

7.7%

WACC

7.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

6.2%

D&A/Revenue

4.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	850	11.9%	-5.0%	-42	-42	35	(32)	40	-79	-76
2027	958	12.8%	-1.8%	-17	-17	40	(38)	-20	4	3
2028	1,094	14.1%	1.4%	15	12	45	(47)	-24	35	29
2029	1,172	7.2%	4.5%	53	42	48	(53)	-14	51	39
2030	1,300	10.9%	7.7%	100	79	54	(63)	-23	93	67
2031	1,530	17.7%	7.7%	118	93	63	(78)	-42	120	79
2032	1,756	14.8%	7.7%	136	107	73	(94)	-41	126	77
2033	1,963	11.8%	7.7%	152	120	81	(111)	-38	127	72
2034	2,138	8.9%	7.7%	165	130	88	(127)	-32	124	65
2035	2,265	5.9%	7.7%	175	138	94	(141)	-23	114	56

Enterprise Value Bridge

Sum of PV(FCFF)413

Terminal Value (Gordon Growth at 3.0%)2,436

PV of Terminal Value1,190

Enterprise Value1,603

(–) Net Debt-81

Equity Value1,684

(÷) Shares Outstanding171

Fair Value per Share$9.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
5.8%	$2	$10	$17	$25	$33
6.8%	$1	$7	$13	$18	$24
7.8%	$1	$5	$10	$14	$19
8.8%	$1	$4	$8	$12	$15
9.8%	$1	$4	$7	$10	$13

Current price: $6.41. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$7.49

Market Price

$6.41

Upside / Downside

+16.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), ACV Auctions Inc. (ACVA) has a fair value of $7.49 based on 8 comparable companies in the Auto - Dealerships industry.

EV/Revenue Valuation — Auto - Dealerships

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
ACV Auctions Inc.ACVA	1,093	1.3x	1.2x
Blue Bird CorporationBLBD	2,248	1.4x	1.2x
Monarch Casino & Resort, Inc.MCRI	2,105	3.7x	3.9x
Albany International Corp.AIN	1,774	1.8x	1.7x
Polestar Automotive Holding UK PLCPSNY	1,401	2.8x	1.5x
The Wendy's CompanyWEN	1,324	2.4x	2.3x
Papa John's International, Inc.PZZA	1,080	1.0x	1.0x
MasterBrand, Inc.MBC	975	0.8x	0.8x
Newegg Commerce, Inc.NEGG	535	0.4x	0.3x
Industry Median		1.6x	1.4x
(*) Revenue		760	850
= Enterprise Value		1,221	1,171
(-) Net Debt		-81	-81
Equity Value		1,302	1,252
(/) Outstanding shares		171	171
Fair Price		$8	$7

Selected Fair Value (avg of trailing + forward)

$7.49

+16.8%