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Credit Acceptance Corporation (referred to as the Company , Credit Acceptance , we , our or us ) makes vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to c…
$640.00
+$2.45 (+0.38%)
EOD Jul 17, 2026
24.92% net margin is respectable. The institution appears to be managing its interest spread and credit risk adequately.
Revenue grew 26.2% YoY.
At 16x earnings, the multiple is above the banking sector average. Financials rarely sustain elevated multiples through credit cycles.
16.0x earnings. In line with financial-sector norms. The question is whether the current credit environment supports sustained earnings at this level.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.73B
▲ +26.2% YoY
Net Income (TTM)
$453M
▲ +71.0% YoY
Net Margin
26.17%
P/E
16.0x
Balance Sheet
Total Assets
$8.69B
Equity
$1.51B
Total Debt
$5.32B
Cash & Equiv.
$26M
5Y CAGR: +0.4%
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At a P/E of 16.0 and a price-to-free-cash-flow of 6.7, Credit Acceptance (CACC) trades below a two-stage DCF intrinsic value of about $1,181.91 per share, so at $640.00 the stock looks undervalued (84.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Credit Acceptance scores 69/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $1,181.91 per share for CACC, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $886.43. At today's $640.00, that puts the stock about 84.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Credit Acceptance scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 0.3% operating margin and a 0.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. CACC currently trades below its estimated intrinsic value and scores 69/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.