A Look at CAR Group (ASX:CAR) Valuation Following New CFO Appointment

CAR Group (ASX:CAR) has named Geoff Trumbull as its next Chief Financial Officer, effective March 2026. Trumbull’s extensive background in finance leadership across industrial and consumer sectors may draw investor attention to potential strategic shifts.

See our latest analysis for CAR Group.

CAR Group’s latest executive appointment comes during a stretch where momentum has faded, with a 1-year total shareholder return of -16.68%. However, its 3-year and 5-year returns remain strong at 62.62% and 93.96% respectively. The recent share price has been under pressure, closing at $33.42. Yet the company’s longer-term trajectory suggests underlying resilience that could be reignited by fresh leadership and strategic change.

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With shares trading about 20% below analyst price targets and recent financial growth outpacing the broader market, investors may wonder whether CAR Group is a bargain at current levels or if expectations are already reflected in the price.

Most Popular Narrative: 16% Undervalued

The most popular narrative sets CAR Group’s fair value notably above its recent share price, creating an intriguing opportunity gap. Strong top-line and margin expansion expectations underpin this outlook, encouraging investors to dig into the logic driving the estimate.

Diversification into adjacent services, including finance, insurance, media/advertising, and marine/concierge offerings, along with product innovation such as Wallet in Brazil, premium products in Korea/US, and proprietary marketing agencies, is deepening customer relationships, boosting ARPU, and providing new, high-margin revenue streams to mitigate core market maturity and cyclicality.

Read the complete narrative.

What is the secret behind this valuation? It hinges on bold projections for future growth and profit margins, with ambitious numbers only hinted at here. Want to know how much optimism is baked in? Don’t miss the key assumptions fueling this fair value. Take a closer look.

Result: Fair Value of $39.99 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rapid change in the car market or major competitive moves could disrupt CAR Group’s strong digital momentum and challenge its future earnings growth.

Find out about the key risks to this CAR Group narrative.

Another View: Trading Well Above Peers

Looking from a price-to-earnings perspective, CAR Group is trading at a hefty premium. Its P/E ratio sits at 45.9x, much higher than both the global industry average of 20.9x and its peer average of 41.2x. The fair ratio, a level the market could shift toward, is 39.9x. This sizeable gap suggests investors are paying up for expected growth, but it also raises the stakes should sentiment shift. Will the premium hold?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own CAR Group Narrative

If you have a different perspective or want to dig into the numbers firsthand, it’s easy to craft your own assessment in under three minutes, so why not Do it your way?

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding CAR Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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