KAR Valuation

Openlane Inc

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25.100

+0.16(0.642%)1D

KAR Relative Valuation

KAR'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, KAR is overvalued; if below, it's undervalued.

Historical Valuation

Openlane Inc (KAR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.40 is considered Undervalued compared with the five-year average of 24.11. The fair price of Openlane Inc (KAR) is between 25.24 to 41.92 according to relative valuation methord. Compared to the current price of 25.10 USD , Openlane Inc is Undervalued By 0.55%.

Relative Value

Fair Zone

25.24-41.92

Current Price：25.10

0.55%

Undervalued

19.40

Trailing

Forward

15.97

EV/EBITDA

Openlane Inc. (KAR) has a current EV/EBITDA of 15.97. The 5-year average EV/EBITDA is 15.26. The thresholds are as follows: Strongly Undervalued below 8.71, Undervalued between 8.71 and 11.99, Fairly Valued between 18.53 and 11.99, Overvalued between 18.53 and 21.80, and Strongly Overvalued above 21.80. The current Forward EV/EBITDA of 15.97 falls within the Historic Trend Line -Fairly Valued range.

22.20

EV/EBIT

Openlane Inc. (KAR) has a current EV/EBIT of 22.20. The 5-year average EV/EBIT is 23.11. The thresholds are as follows: Strongly Undervalued below 4.55, Undervalued between 4.55 and 13.83, Fairly Valued between 32.39 and 13.83, Overvalued between 32.39 and 41.67, and Strongly Overvalued above 41.67. The current Forward EV/EBIT of 22.20 falls within the Historic Trend Line -Fairly Valued range.

24.94

Openlane Inc. (KAR) has a current PS of 24.94. The 5-year average PS is 1.20. The thresholds are as follows: Strongly Undervalued below -2.60, Undervalued between -2.60 and -0.70, Fairly Valued between 3.10 and -0.70, Overvalued between 3.10 and 5.01, and Strongly Overvalued above 5.01. The current Forward PS of 24.94 falls within the Strongly Overvalued range.

9.60

P/OCF

Openlane Inc. (KAR) has a current P/OCF of 9.60. The 5-year average P/OCF is 3.00. The thresholds are as follows: Strongly Undervalued below -21.90, Undervalued between -21.90 and -9.45, Fairly Valued between 15.45 and -9.45, Overvalued between 15.45 and 27.90, and Strongly Overvalued above 27.90. The current Forward P/OCF of 9.60 falls within the Historic Trend Line -Fairly Valued range.

8.54

P/FCF

Openlane Inc. (KAR) has a current P/FCF of 8.54. The 5-year average P/FCF is 6.14. The thresholds are as follows: Strongly Undervalued below -0.24, Undervalued between -0.24 and 2.95, Fairly Valued between 9.33 and 2.95, Overvalued between 9.33 and 12.52, and Strongly Overvalued above 12.52. The current Forward P/FCF of 8.54 falls within the Historic Trend Line -Fairly Valued range.

Openlane Inc (KAR) has a current Price-to-Book (P/B) ratio of 1.86. Compared to its 3-year average P/B ratio of 1.41 , the current P/B ratio is approximately 32.13% higher. Relative to its 5-year average P/B ratio of 1.35, the current P/B ratio is about 37.65% higher. Openlane Inc (KAR) has a Forward Free Cash Flow (FCF) yield of approximately 0.09%. Compared to its 3-year average FCF yield of 1.19%, the current FCF yield is approximately -92.25% lower. Relative to its 5-year average FCF yield of 4.68% , the current FCF yield is about -98.03% lower.

1.86

P/B

Median3y

1.41

Median5y

1.35

0.09

FCF Yield

Median3y

1.19

Median5y

4.68

Competitors Valuation Multiple

The average P/S ratio for KAR's competitors is 16.35, providing a benchmark for relative valuation. Openlane Inc Corp (KAR) exhibits a P/S ratio of 24.94, which is 52.55% above the industry average. Given its robust revenue growth of 11.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BigBear.ai Holdings Inc

Performance Decomposition

Market capitalization of KAR increased by 24.26% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.33 to 9.61.

The secondary factor is the Revenue Growth, contributed 11.15%to the performance.

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

11.15%

448.40M → 498.40M

Revenue Growth

51.82%

6.33 → 9.61

Margin Expansion

-38.71%

47.05 → 28.84

P/E Change

24.26%