KAR PE Ratio & Valuation,Is KAR Overvalued

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 Fair zone, suggesting that its current forward PE ratio of 21.56 is considered Fairly compared with the five-year average of 24.17. The fair price of Openlane Inc (KAR) is between 23.50 to 40.50 according to relative valuation methord.

Relative Value

Fair Zone

23.50-40.50

Current Price：28.84

Fair

21.56

15.83

EV/EBITDA

Openlane Inc. (KAR) has a current EV/EBITDA of 15.83. The 5-year average EV/EBITDA is 15.36. The thresholds are as follows: Strongly Undervalued below 9.10, Undervalued between 9.10 and 12.23, Fairly Valued between 18.49 and 12.23, Overvalued between 18.49 and 21.62, and Strongly Overvalued above 21.62. The current Forward EV/EBITDA of 15.83 falls within the Historic Trend Line -Fairly Valued range.

25.99

EV/EBIT

Openlane Inc. (KAR) has a current EV/EBIT of 25.99. The 5-year average EV/EBIT is 23.33. The thresholds are as follows: Strongly Undervalued below 5.05, Undervalued between 5.05 and 14.19, Fairly Valued between 32.47 and 14.19, Overvalued between 32.47 and 41.61, and Strongly Overvalued above 41.61. The current Forward EV/EBIT of 25.99 falls within the Historic Trend Line -Fairly Valued range.

1.54

Openlane Inc. (KAR) has a current PS of 1.54. The 5-year average PS is 1.08. The thresholds are as follows: Strongly Undervalued below 0.67, Undervalued between 0.67 and 0.87, Fairly Valued between 1.28 and 0.87, Overvalued between 1.28 and 1.48, and Strongly Overvalued above 1.48. The current Forward PS of 1.54 falls within the Strongly Overvalued range.

9.61

P/OCF

Openlane Inc. (KAR) has a current P/OCF of 9.61. The 5-year average P/OCF is 3.16. The thresholds are as follows: Strongly Undervalued below -21.62, Undervalued between -21.62 and -9.23, Fairly Valued between 15.56 and -9.23, Overvalued between 15.56 and 27.95, and Strongly Overvalued above 27.95. The current Forward P/OCF of 9.61 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 6.21. The thresholds are as follows: Strongly Undervalued below -0.14, Undervalued between -0.14 and 3.03, Fairly Valued between 9.38 and 3.03, Overvalued between 9.38 and 12.56, and Strongly Overvalued above 12.56. 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 2.15. Compared to its 3-year average P/B ratio of 1.44 , the current P/B ratio is approximately 49.18% higher. Relative to its 5-year average P/B ratio of 1.36, the current P/B ratio is about 57.96% higher. Openlane Inc (KAR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.49% , the current FCF yield is about -100.00% lower.

2.15

P/B

Median3y

1.44

Median5y

1.36

8.03

FCF Yield

Median3y

2.64

Median5y

4.49

Competitors Valuation Multiple

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

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KAR increased by 45.36% 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

-17.61%

40.19 → 33.11

P/E Change

45.36%

19.84 → 28.84

Mkt Cap Growth

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Frequently Asked Questions

Is Openlane Inc (KAR) currently overvalued or undervalued?

What is Openlane Inc (KAR) fair value?

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. The fair price of Openlane Inc (KAR) is between 23.50 to 40.50 according to relative valuation methord.

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

What is the current P/B ratio for Openlane Inc (KAR) as of Dec 16 2025?

As of Dec 16 2025, Openlane Inc (KAR) has a P/B ratio of 2.15. This indicates that the market values KAR at 2.15 times its book value.

What is the current FCF Yield for Openlane Inc (KAR) as of Dec 16 2025?

As of Dec 16 2025, Openlane Inc (KAR) has a FCF Yield of 0.00%. This means that for every dollar of Openlane Inc’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Openlane Inc (KAR) as of Dec 16 2025?

As of Dec 16 2025, Openlane Inc (KAR) has a Forward P/E ratio of 21.56. This means the market is willing to pay $21.56 for every dollar of Openlane Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Openlane Inc (KAR) as of Dec 16 2025?

As of Dec 16 2025, Openlane Inc (KAR) has a Forward P/S ratio of 0.00. This means the market is valuing KAR at $0.00 for every dollar of expected revenue over the next 12 months.

KAR Valuation