Is Driven Brands (DRVN) Pricing Reflect Long Term Value After Recent Auto Services Reassessment

Simply Wall St

Wed, February 25, 2026 at 2:11 PM GMT+9 4 min read

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DRVN

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If you are wondering whether Driven Brands Holdings is attractively priced today, this review will walk through what the current market price might be implying about its value.

The stock closed at US$16.61, with a 7 day return of 1.8% decline, a 30 day return of 2.6%, a year to date return of 14.6%, a 1 year return of 6.2%, and longer term returns of 40.6% decline over 3 years and 44.1% decline over 5 years, which may influence how you think about its risk and potential.

Recent news coverage has focused on how investors are reassessing auto services and maintenance providers, including franchise based businesses like Driven Brands, with attention on how they are positioned within consumer services. This context is important when you think about how the market is currently pricing the stock, even before you look at detailed valuation models.

Based on Simply Wall St's valuation checks, Driven Brands Holdings has a value score of 5 out of 6. Next, we will walk through the different valuation approaches behind that result, followed by a broader way to think about what valuation really means for you as an investor.

Driven Brands Holdings delivered 6.2% returns over the last year. See how this stacks up to the rest of the Consumer Services industry.

Approach 1: Driven Brands Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and then discounting those back to today at an appropriate rate. It is essentially asking what those future $ cash flows are worth in present terms.

For Driven Brands Holdings, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is a loss of about $168.2 million. Analysts and further extrapolations then project free cash flow turning positive and reaching $525.2 million in 2035, with interim projections such as $190.2 million in 2026 and $342 million in 2029. All of these are expressed in $ and are below $1b, so the figures are in millions, not billions.

When all of those future cash flows are discounted back, Simply Wall St’s DCF model arrives at an estimated intrinsic value of about $41.18 per share. Compared with the recent share price of $16.61, this implies the stock is about 59.7% undervalued based on this method alone.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Driven Brands Holdings is undervalued by 59.7%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

Story Continues  

DRVN Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Driven Brands Holdings.

Approach 2: Driven Brands Holdings Price vs Sales

For companies where investors focus on revenues and market share, the P/S ratio is a useful cross check on valuation because it compares the value the market puts on the business to the sales it generates.

Higher growth expectations or lower perceived risk usually justify a higher P/S multiple, while slower expected growth or higher risk often line up with a lower, more cautious multiple. So the question is not whether a P/S of 1x is “good” or “bad”, but whether it makes sense given the company’s profile.

Driven Brands Holdings currently trades on a P/S of 1.12x. That sits below the Consumer Services industry average of 1.25x and below the peer group average of 1.86x. Simply Wall St’s Fair Ratio for Driven Brands is 1.09x, which is its proprietary estimate of what the P/S should be after adjusting for factors like earnings growth, margins, size and key risks. This tailored Fair Ratio can be more informative than a simple industry or peer comparison because it is specific to the company’s fundamentals rather than broad group averages. With the current P/S at 1.12x versus a Fair Ratio of 1.09x, the shares look ABOUT RIGHT on this measure.

Result: ABOUT RIGHT

NasdaqGS:DRVN P/S Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Driven Brands Holdings Narrative

Earlier we mentioned that there is an even better way to understand valuation, so on Simply Wall St’s Community page you can build a “Narrative” for Driven Brands Holdings. This is simply your story about the business linked directly to your own revenue, earnings and margin forecasts, turned into a fair value that updates when new news or earnings arrive. You can then compare this with the current share price to decide what action, if any, makes sense for you, whether you lean closer to a more optimistic view that sees fair value near US$25.00 or a more cautious view nearer US$18.00, or anything in between.

Do you think there’s more to the story for Driven Brands Holdings? Head over to our Community to see what others are saying!

NasdaqGS:DRVN 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include DRVN.

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