Impressive Print Cleared High Expectations

Research evidence excerpt

Impressive Print Cleared High Expectations

TD Cowen Advance Auto Parts

Global Research May 21, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Hardlines:

Our valuation methodology is primarily based on Price-to-Earnings (P/E), supplemented by,

in some cases, Enterprise Value to EBITDA (EV/EBITDA) and Price-to-Free Cash Flow (P/FCF)

ratios and DCF analysis. We may also use Enterprise Value to Revenue (EV/Revs) for companies

operating at depressed levels of profitability. In some cases we use probability-weighed,

scenario-based decision trees as a basis for devising our price targets. We incorporate the

company’s and its peers’ historical and current valuation multiples, as well as our analysis of

future growth rates, company-specific risks, return on invested capital, and other inputs from

our research when devising our valuation multiples and the probabilities we assign to different

scenarios when developing our price targets.

Investment Risks

Risks to the companies in our sector include risks and uncertainties associated with the global

economic and housing environment and related consumer spending, as well as competition

within the industry. These factors can create variability in sales and margins. Increases in the

prices of raw materials, rent, freight, labor, tariffs, or manufacturers’ inability to produce goods

on time or to specifications may negatively impact results. Execution flaws and the departure

of certain key executives may negatively affect performance and financial results. Legal,

regulatory, political, currency, and economic risks, as well as challenges to maintain favorable

brand recognition, loyalty, and reputation for quality, may affect the ability to conduct business

in both domestic and international markets.

Risks To The Price Target