-57%

est. 2Y upside i

Rank

#3551

Sector

Automotive Technology / Online Marketplace

Est. Liquidity

~0Y

Data Quality

Data: High

ACV Auctions presents a moderate upside opportunity with higher risk.

Last updated: March 10, 2026

Bull (15%)+100%

ACV successfully executes on its profitability roadmap, driven by AI-powered tools like VIPER and ClearCar, leading to improved operational efficiency and expanding adjusted EBITDA margins. Strong dealer adoption and market share gains in a digitizing wholesale market, coupled with a favorable macroeconomic environment for used vehicles, push revenue growth back to 20%+ and justify a market cap of $1.782B.

Base (45%)+30%

ACV maintains its market position in the dealer-to-dealer online marketplace, achieving its guided low-double-digit revenue growth (11-13% YoY) and modest adjusted EBITDA expansion. While facing continued competition and macroeconomic volatility, the company makes gradual progress towards profitability, resulting in a valuation of $1.158B.

Bear (40%)-40%

ACV struggles to achieve its profitability targets due to elevated arbitration costs and increased investment in growth initiatives. Intense competition from incumbents like Manheim and ADESA, coupled with slowing unit growth and persistent macroeconomic headwinds, leads to further stock price decline and a valuation of $534.6M, significantly eroding common stock value given the preference stack.

Est. time to liquidity~0.0 years

Preference Stack Risk

severe

Funding Intensity

80%

Investors hold $709M in liquidation preferences, which is 79.6% of the current $891M valuation, meaning common stock holders could receive little to nothing in an exit at or below the current valuation.

Dilution Risk

high

Despite some cash on hand ($270M cash, $190M debt as of Q4 2025), continued GAAP net losses and slowing revenue growth could necessitate future capital raises, leading to further dilution for existing equity holders.

Secondary Liquidity

active

As a publicly traded company on the NYSE (ACVA), the stock has active secondary market liquidity.

View all 6 open roles at ACV Auctions →

Last updated: February 18, 2026

Questions to Ask at the Interview

Strategic questions based on ACV Auctions's data — designed to show you've done your homework.

  • 1

    “Given the projected low-double-digit revenue growth for 2026 and ongoing GAAP net losses, how does ACV plan to accelerate its path to sustainable profitability and positive free cash flow in the next two years?”

  • 2

    “With dominant incumbents like Manheim and ADESA actively digitizing, how does ACV plan to further differentiate its offerings and defend its market share, particularly with AI-powered inspection tools like VIPER?”

  • 3

    “Considering the significant preference stack from prior funding rounds, what is the company's strategy for creating substantial value for common stock holders, and what is the expected timeline for achieving this?”

Community

Valuation Sentiment

Our model estimates -57% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.