What is Credit Acceptance Corp worth?
With the base-case assumptions below, a discounted cash flow model on Credit Acceptance Corp's reported free cash flow gives $1,874.16 per share. The share price was $555.68 on September 25, 2026, 70% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 2.0% | 10.0% | $1,152.47 | +107% |
| Base | 7.0% | 9.0% | $1,874.16 | +237% |
| Bull | 12.0% | 8.0% | $3,221.22 | +480% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $2,396.97 | $2,556.97 | $2,752.53 | $2,996.97 | $3,311.26 |
| 8.0% | $2,006.53 | $2,110.29 | $2,232.91 | $2,380.06 | $2,559.91 |
| 9.0% | $1,721.36 | $1,792.30 | $1,874.16 | $1,969.66 | $2,082.52 |
| 10.0% | $1,504.23 | $1,554.68 | $1,611.85 | $1,677.20 | $1,752.60 |
| 11.0% | $1,333.58 | $1,370.57 | $1,411.91 | $1,458.41 | $1,511.12 |
Where the presets come from
Base: years 1 to 5 grow at Credit Acceptance Corp's revenue growth rate over the last 5 fiscal years (6.8% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions