We rank UnitedAuto Group #6.  We estimate UnitedAuto Group will be worth ~$47 in six years from now (sometime in 2012) as the stock trades at 13.6x our 2012 EPS estimate of $3.44.  If the stock reaches these levels (earnings and multiple,) it represents 127% upside from Friday’s closing stock price ($20.53 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 $29.  This means that based on what we think the company will earn in 2012, we think the stock is worth $29 today, a 43% premium from current levels. 

UnitedAuto Group was very close to making the elite 5, with what we characte ...

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Related Companies: Penske Automotive Group (formerly UnitedAuto)