Auto Trader Group (AUTO.L)

Communications · LSE · UK

£5.16+8.31% today

Fundamentals

Market cap£3.92B

P/E ratio14.7

Dividend yield2.36%

Revenue growth (YoY)+2.7%

Profit margin47.1%

Return on equity60.2%

Next earnings2026-05-21

Valuation and ratings

DCF fair value£5.49

Upside to fair value+6.3%

Analyst target (mean)£5.82

Analyst range£4.10 to £8.30

Analysts covering17

Consensus viewnone

Moat score82/100

Overall rating73/100, Strong Buy

Auto Trader Group trades at £5.16, close to the £5.49 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.

Our moat model scores it 82 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 14.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Auto Trader Group

Autotrader Group plc operates an automotive platform in the United Kingdom. The company operates through Autotrader and Autorama segments. It provides vehicle advertisement on its websites for private sellers, as well as insurance and loan finance products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company also sells new vehicles and accessories; and facilitates the lease of new vehicles. It offers its products to retailers, home traders, and logistics customers. The company was formerly known as Auto Trader Group plc and changed its name to Autotrader Group plc in January 2026. The company was founded in 1977 and is headquartered in Manchester, the United Kingdom.

Industry: Internet Content & InformationEmployees: 1,239HQ: United Kingdom

AUTO.L passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

High margin machines

Companies that keep an unusually large share of every pound they sell. That is pricing power made visible.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Beaten down, but not broken

Good businesses whose share price has been punished. Sometimes the market is wrong. Sometimes it is early. The screen cannot tell you which.

Highest conviction

The best overall scores in our universe, restricted to companies where we actually hold enough data to have an opinion worth reading.

Common questions

Is Auto Trader Group (AUTO.L) undervalued?

Against our discounted cash flow estimate of £5.49, AUTO.L at £5.16 is 6% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is AUTO.L's P/E ratio?

AUTO.L trades at 14.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for AUTO.L, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open AUTO.L in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.