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 Overvalued zone, suggesting that its current forward PE ratio of 16.70 is considered Overvalued compared with the five-year average of 8.68. The fair price of Avis Budget Group Inc (CAR) is between 55.36 to 114.51 according to relative valuation methord. Compared to the current price of 134.82 USD , Avis Budget Group Inc is Overvalued By 17.73%.
Relative Value
Fair Zone
55.36-114.51
Current Price：134.82
17.73%
Overvalued
16.58
PE
1Y
3Y
5Y
Trailing
Forward
31.35
EV/EBITDA
Avis Budget Group Inc. (CAR) has a current EV/EBITDA of 31.35. The 5-year average EV/EBITDA is 19.42. The thresholds are as follows: Strongly Undervalued below 1.71, Undervalued between 1.71 and 10.56, Fairly Valued between 28.28 and 10.56, Overvalued between 28.28 and 37.14, and Strongly Overvalued above 37.14. The current Forward EV/EBITDA of 31.35 falls within the Overvalued range.
40.88
EV/EBIT
Avis Budget Group Inc. (CAR) has a current EV/EBIT of 40.88. The 5-year average EV/EBIT is 24.85. The thresholds are as follows: Strongly Undervalued below -4.02, Undervalued between -4.02 and 10.41, Fairly Valued between 39.28 and 10.41, Overvalued between 39.28 and 53.71, and Strongly Overvalued above 53.71. The current Forward EV/EBIT of 40.88 falls within the Overvalued range.
0.40
PS
Avis Budget Group Inc. (CAR) has a current PS of 0.40. The 5-year average PS is 0.58. The thresholds are as follows: Strongly Undervalued below 0.03, Undervalued between 0.03 and 0.31, Fairly Valued between 0.85 and 0.31, Overvalued between 0.85 and 1.13, and Strongly Overvalued above 1.13. The current Forward PS of 0.40 falls within the Historic Trend Line -Fairly Valued range.
1.40
P/OCF
Avis Budget Group Inc. (CAR) has a current P/OCF of 1.40. The 5-year average P/OCF is 1.90. The thresholds are as follows: Strongly Undervalued below 0.18, Undervalued between 0.18 and 1.04, Fairly Valued between 2.77 and 1.04, Overvalued between 2.77 and 3.63, and Strongly Overvalued above 3.63. The current Forward P/OCF of 1.40 falls within the Historic Trend Line -Fairly Valued range.
-6.83
P/FCF
Avis Budget Group Inc. (CAR) has a current P/FCF of -6.83. The 5-year average P/FCF is 10.19. The thresholds are as follows: Strongly Undervalued below -25.84, Undervalued between -25.84 and -7.82, Fairly Valued between 28.20 and -7.82, Overvalued between 28.20 and 46.21, and Strongly Overvalued above 46.21. The current Forward P/FCF of -6.83 falls within the Historic Trend Line -Fairly Valued range.
Avis Budget Group Inc (CAR) has a current Price-to-Book (P/B) ratio of -1.98. Compared to its 3-year average P/B ratio of -29.80 , the current P/B ratio is approximately -93.36% higher. Relative to its 5-year average P/B ratio of -24.36, the current P/B ratio is about -91.88% higher. Avis Budget Group Inc (CAR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -16.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.82% , the current FCF yield is about -100.00% lower.
-1.96
P/B
Median3y
-29.80
Median5y
-24.36
-19.35
FCF Yield
Median3y
-16.92
Median5y
-1.82
Competitors Valuation Multiple
The average P/S ratio for CAR's competitors is , providing a benchmark for relative valuation. Avis Budget Group Inc Corp (CAR) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.12%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CAR increased by 66.05% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.84 to 10.23.
The secondary factor is the P/E Change, contributed 15.37%to the performance.
Overall, the performance of CAR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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