We rank O’Reilly Auto Parts #4.  We estimate O’Reilly will be worth ~$72 in six years from now (sometime in 2012) as the stock trades at 21.6x our 2012 EPS estimate of $3.35.  If the stock reaches these levels (earnings and multiple,) it represents 150% upside from Friday’s closing stock price ($29.13 on 07/07/06.)  Using an 8% discount rate (over the course of the next six years,) based on our 2012 earnings forecast, we calculate a net present value of $46.  This means that based on what we think the company will earn in 2012, the stock should be worth $46 today, a 57% premium from current levels.     

While the DIY market is likely to provide some ...

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