CAR Valuation

Avis Budget Group Inc

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153.080

-0.63(-0.410%)1D

Overview
Forecast
Valuation
Earnings

CAR Relative Valuation

CAR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CAR is overvalued; if below, it's undervalued.

Historical Valuation

Avis Budget Group Inc (CAR) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.47 is considered Undervalued compared with the five-year average of 6.74. The fair price of Avis Budget Group Inc (CAR) is between 219.79 to 366.24 according to relative valuation methord. Compared to the current price of 153.71 USD , Avis Budget Group Inc is Undervalued By 30.06%.

Relative Value

Fair Zone

219.79-366.24

Current Price：153.71

30.06%

Undervalued

14.28

Trailing

Forward

32.24

EV/EBITDA

Avis Budget Group Inc. (CAR) has a current EV/EBITDA of 32.24. The 5-year average EV/EBITDA is 22.23. The thresholds are as follows: Strongly Undervalued below -26.14, Undervalued between -26.14 and -1.96, Fairly Valued between 46.41 and -1.96, Overvalued between 46.41 and 70.60, and Strongly Overvalued above 70.60. The current Forward EV/EBITDA of 32.24 falls within the Historic Trend Line -Fairly Valued range.

42.26

EV/EBIT

Avis Budget Group Inc. (CAR) has a current EV/EBIT of 42.26. The 5-year average EV/EBIT is 4.63. The thresholds are as follows: Strongly Undervalued below -239.01, Undervalued between -239.01 and -117.19, Fairly Valued between 126.45 and -117.19, Overvalued between 126.45 and 248.26, and Strongly Overvalued above 248.26. The current Forward EV/EBIT of 42.26 falls within the Historic Trend Line -Fairly Valued range.

0.46

Avis Budget Group Inc. (CAR) has a current PS of 0.46. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.02, Undervalued between 0.02 and 0.29, Fairly Valued between 0.85 and 0.29, Overvalued between 0.85 and 1.13, and Strongly Overvalued above 1.13. The current Forward PS of 0.46 falls within the Historic Trend Line -Fairly Valued range.

1.69

P/OCF

Avis Budget Group Inc. (CAR) has a current P/OCF of 1.69. The 5-year average P/OCF is 1.89. The thresholds are as follows: Strongly Undervalued below 0.14, Undervalued between 0.14 and 1.01, Fairly Valued between 2.76 and 1.01, Overvalued between 2.76 and 3.63, and Strongly Overvalued above 3.63. The current Forward P/OCF of 1.69 falls within the Historic Trend Line -Fairly Valued range.

33.29

P/FCF

Avis Budget Group Inc. (CAR) has a current P/FCF of 33.29. The 5-year average P/FCF is 10.15. The thresholds are as follows: Strongly Undervalued below -25.73, Undervalued between -25.73 and -7.79, Fairly Valued between 28.08 and -7.79, Overvalued between 28.08 and 46.02, and Strongly Overvalued above 46.02. The current Forward P/FCF of 33.29 falls within the Overvalued range.

Avis Budget Group Inc (CAR) has a current Price-to-Book (P/B) ratio of -1.97. Compared to its 3-year average P/B ratio of -31.30 , the current P/B ratio is approximately -93.70% higher. Relative to its 5-year average P/B ratio of -25.81, the current P/B ratio is about -92.36% higher. Avis Budget Group Inc (CAR) has a Forward Free Cash Flow (FCF) yield of approximately -8.25%. Compared to its 3-year average FCF yield of -15.71%, the current FCF yield is approximately -47.49% lower. Relative to its 5-year average FCF yield of 9.53% , the current FCF yield is about -186.56% lower.

-1.96

P/B

Median3y

-31.30

Median5y

-25.81

-8.41

FCF Yield

Median3y

-15.71

Median5y

9.53

Competitors Valuation Multiple

The average P/S ratio for CAR's competitors is 1.89, providing a benchmark for relative valuation. Avis Budget Group Inc Corp (CAR) exhibits a P/S ratio of 0.46, which is -75.64% above the industry average. Given its robust revenue growth of -0.30%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CAR.O

Avis Budget Group Inc

Credit Acceptance Corp

PennyMac Financial Services Inc

Firstcash Holdings Inc

Performance Decomposition

Market capitalization of CAR increased by 87.47% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.95 to -2.43.

The secondary factor is the Revenue Growth, contributed -0.30%to the performance.

Overall, the performance of CAR in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.30%

3.05B → 3.04B

Revenue Growth

-67.35%

0.49 → 0.16

Margin Expansion

155.12%

-0.95 → -2.43

P/E Change

87.47%