WEBULL

Driven Brands (DRVN) Valuation After Updated 2025 Guidance and Car Wash Business Divestiture

Simply Wall St · 23h ago

Driven Brands Holdings (DRVN) just reset the scoreboard for 2025, updating its earnings guidance after divesting its international car wash business and reclassifying it as discontinued operations, with revenue now projected between $1.85 billion and $1.87 billion.

See our latest analysis for Driven Brands Holdings.

The refreshed guidance has arrived just as sentiment is stabilizing, with a 30 day share price return of 9.5 percent partially offsetting the weaker 1 year total shareholder return of 8.86 percent, suggesting momentum is rebuilding after a tougher stretch.

If you are reassessing auto service names after this move, it could be worth scanning other auto manufacturers to spot where the market may be pricing in the next leg of growth.

With the stock still trading at a steep discount to analyst targets despite improving sentiment, investors now face a key question: Is Driven Brands quietly undervalued, or is its share price already reflecting the next wave of growth?

Most Popular Narrative Narrative: 30.6% Undervalued

Compared with Driven Brands Holdings last close of $15.22, the most widely followed narrative argues for a materially higher fair value anchored in future profitability.

The company is capitalizing on its scale and operational leverage by integrating digital platforms and data analytics to enhance customer retention, increase predictive maintenance offers, and optimize store-level economics, likely driving improvements in both net margins and earnings predictability over time.

Read the complete narrative.

Want to see how modest revenue growth, rising margins, and a re rated earnings multiple combine into that upside case? The narrative connects these levers in surprising ways.

Result: Fair Value of $21.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat scenario could falter if EV adoption accelerates faster than expected or if Take 5 unit expansion delivers weaker incremental returns.

Find out about the key risks to this Driven Brands Holdings narrative.

Build Your Own Driven Brands Holdings Narrative

If you see the story differently or want to stress test the assumptions yourself, you can build a custom narrative in just minutes, Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Driven Brands Holdings.

Ready for your next investing move?

Put your research to work and use the Simply Wall Street Screener to uncover focused opportunities other investors may be overlooking before the market catches up.

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.