CAR PE Ratio & Valuation,Is CAR Overvalued

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 15.76 is considered Overvalued compared with the five-year average of 8.86. The fair price of Avis Budget Group Inc (CAR) is between 56.83 to 116.73 according to relative valuation methord. Compared to the current price of 127.04 USD , Avis Budget Group Inc is Overvalued By 8.83%.

Relative Value

Fair Zone

56.83-116.73

Current Price：127.04

8.83%

Overvalued

15.76

30.87

EV/EBITDA

Avis Budget Group Inc. (CAR) has a current EV/EBITDA of 30.87. The 5-year average EV/EBITDA is 19.72. The thresholds are as follows: Strongly Undervalued below 1.85, Undervalued between 1.85 and 10.79, Fairly Valued between 28.65 and 10.79, Overvalued between 28.65 and 37.58, and Strongly Overvalued above 37.58. The current Forward EV/EBITDA of 30.87 falls within the Overvalued range.

40.59

EV/EBIT

Avis Budget Group Inc. (CAR) has a current EV/EBIT of 40.59. The 5-year average EV/EBIT is 24.80. The thresholds are as follows: Strongly Undervalued below -3.58, Undervalued between -3.58 and 10.61, Fairly Valued between 38.99 and 10.61, Overvalued between 38.99 and 53.18, and Strongly Overvalued above 53.18. The current Forward EV/EBIT of 40.59 falls within the Overvalued range.

0.38

Avis Budget Group Inc. (CAR) has a current PS of 0.38. The 5-year average PS is 0.58. The thresholds are as follows: Strongly Undervalued below 0.04, Undervalued between 0.04 and 0.31, Fairly Valued between 0.86 and 0.31, Overvalued between 0.86 and 1.13, and Strongly Overvalued above 1.13. The current Forward PS of 0.38 falls within the Historic Trend Line -Fairly Valued range.

1.33

P/OCF

Avis Budget Group Inc. (CAR) has a current P/OCF of 1.33. The 5-year average P/OCF is 1.90. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 1.04, Fairly Valued between 2.76 and 1.04, Overvalued between 2.76 and 3.63, and Strongly Overvalued above 3.63. The current Forward P/OCF of 1.33 falls within the Historic Trend Line -Fairly Valued range.

-6.49

P/FCF

Avis Budget Group Inc. (CAR) has a current P/FCF of -6.49. The 5-year average P/FCF is 9.98. The thresholds are as follows: Strongly Undervalued below -26.31, Undervalued between -26.31 and -8.16, Fairly Valued between 28.12 and -8.16, Overvalued between 28.12 and 46.26, and Strongly Overvalued above 46.26. The current Forward P/FCF of -6.49 falls within the Historic Trend Line -Fairly Valued range.

Avis Budget Group Inc (CAR) has a current Price-to-Book (P/B) ratio of -1.88. Compared to its 3-year average P/B ratio of -29.56 , the current P/B ratio is approximately -93.64% higher. Relative to its 5-year average P/B ratio of -23.91, the current P/B ratio is about -92.13% higher. Avis Budget Group Inc (CAR) has a Forward Free Cash Flow (FCF) yield of approximately -20.34%. Compared to its 3-year average FCF yield of -17.56%, the current FCF yield is approximately 15.82% lower. Relative to its 5-year average FCF yield of -4.93% , the current FCF yield is about 312.33% lower.

-1.88

P/B

Median3y

-29.56

Median5y

-23.91

-20.34

FCF Yield

Median3y

-17.56

Median5y

-4.93

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 0.38, which is -79.81% above the industry average. Given its robust revenue growth of 1.12%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CAR increased by 41.63% 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 Revenue Growth, contributed 1.12%to the performance.

Overall, the performance of CAR in the past 1 year is driven by Margin Expansion. Which is more sustainable.

1.12%

3.48B → 3.52B

Revenue Growth

49.56%

6.84 → 10.23

Margin Expansion

-9.05%

-2.36 → -2.15

P/E Change

41.63%

89.70 → 127.04

Mkt Cap Growth

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Frequently Asked Questions

Is Avis Budget Group Inc (CAR) currently overvalued or undervalued?

What is Avis Budget Group Inc (CAR) fair value?

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. The fair price of Avis Budget Group Inc (CAR) is between 56.83 to 116.73 according to relative valuation methord.

How does CAR's valuation metrics compare to the industry average?

What is the current P/B ratio for Avis Budget Group Inc (CAR) as of Jan 08 2026?

As of Jan 08 2026, Avis Budget Group Inc (CAR) has a P/B ratio of -1.88. This indicates that the market values CAR at -1.88 times its book value.

What is the current FCF Yield for Avis Budget Group Inc (CAR) as of Jan 08 2026?

As of Jan 08 2026, Avis Budget Group Inc (CAR) has a FCF Yield of -20.34%. This means that for every dollar of Avis Budget Group Inc’s market capitalization, the company generates -20.34 cents in free cash flow.

What is the current Forward P/E ratio for Avis Budget Group Inc (CAR) as of Jan 08 2026?

As of Jan 08 2026, Avis Budget Group Inc (CAR) has a Forward P/E ratio of 15.76. This means the market is willing to pay $15.76 for every dollar of Avis Budget Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Avis Budget Group Inc (CAR) as of Jan 08 2026?

As of Jan 08 2026, Avis Budget Group Inc (CAR) has a Forward P/S ratio of 0.38. This means the market is valuing CAR at $0.38 for every dollar of expected revenue over the next 12 months.

CAR Valuation