Avis Budget Group, Inc.

NasdaqGS:CAR Stock Report

Market Cap: US$3.6b

Avis Budget Group Valuation

Is CAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAR ($102.67) is trading below our estimate of fair value ($1316.16)

Significantly Below Fair Value: CAR is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAR?

Key metric: As CAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CAR. This is calculated by dividing CAR's market cap by their current earnings.
What is CAR's PE Ratio?
PE Ratio9.1x
EarningsUS$396.00m
Market CapUS$3.61b

Price to Earnings Ratio vs Peers

How does CAR's PE Ratio compare to its peers?

The above table shows the PE ratio for CAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.3x
DIDI.Y DiDi Global
159.9x45.5%US$22.1b
WERN Werner Enterprises
53.8x54.0%US$2.5b
ARCB ArcBest
13.3x3.3%US$2.6b
UBER Uber Technologies
34.2x21.6%US$150.6b
CAR Avis Budget Group
9.1x14.4%US$3.6b

Price-To-Earnings vs Peers: CAR is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (65.3x).


Price to Earnings Ratio vs Industry

How does CAR's PE Ratio compare vs other companies in the US Transportation Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
CAR 9.1xIndustry Avg. 31.5xNo. of Companies5PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CAR is good value based on its Price-To-Earnings Ratio (9.1x) compared to the US Transportation industry average (31.5x).


Price to Earnings Ratio vs Fair Ratio

What is CAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: CAR is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$102.67
US$122.25
+19.1%
18.9%US$150.00US$85.00n/a8
Nov ’25US$92.06
US$128.89
+40.0%
23.1%US$175.00US$90.00n/a9
Oct ’25US$85.85
US$129.56
+50.9%
21.5%US$175.00US$95.00n/a9
Sep ’25US$81.99
US$132.63
+61.8%
21.1%US$175.00US$95.00n/a8
Aug ’25US$94.50
US$154.38
+63.4%
18.1%US$205.00US$120.00n/a8
Jul ’25US$101.28
US$157.75
+55.8%
16.3%US$205.00US$120.00n/a8
Jun ’25US$113.73
US$157.75
+38.7%
16.3%US$205.00US$120.00n/a8
May ’25US$94.75
US$164.63
+73.7%
23.4%US$240.00US$117.00n/a8
Apr ’25US$125.78
US$175.63
+39.6%
20.0%US$240.00US$118.00n/a8
Mar ’25US$110.52
US$180.00
+62.9%
21.8%US$240.00US$118.00n/a6
Feb ’25US$162.75
US$237.00
+45.6%
20.2%US$305.00US$164.00n/a6
Jan ’25US$177.26
US$234.67
+32.4%
20.3%US$305.00US$164.00n/a6
Dec ’24US$195.71
US$248.80
+27.1%
15.7%US$305.00US$195.00n/a5
Nov ’24US$164.00
US$239.60
+46.1%
12.1%US$280.00US$195.00US$92.065
Oct ’24US$179.69
US$252.80
+40.7%
16.2%US$319.00US$195.00US$85.855
Sep ’24US$212.22
US$255.80
+20.5%
16.3%US$319.00US$195.00US$81.995
Aug ’24US$226.76
US$254.40
+12.2%
16.2%US$319.00US$195.00US$94.505
Jul ’24US$228.67
US$256.00
+12.0%
17.1%US$327.00US$195.00US$101.285
Jun ’24US$169.60
US$246.40
+45.3%
21.4%US$327.00US$182.00US$113.735
May ’24US$177.19
US$256.60
+44.8%
19.5%US$327.00US$175.00US$94.755
Apr ’24US$194.80
US$260.00
+33.5%
19.5%US$327.00US$175.00US$125.785
Mar ’24US$218.31
US$260.00
+19.1%
19.5%US$327.00US$175.00US$110.525
Feb ’24US$210.37
US$233.40
+10.9%
17.4%US$270.00US$160.00US$162.755
Jan ’24US$163.93
US$235.60
+43.7%
19.0%US$290.00US$160.00US$177.265
Dec ’23US$218.57
US$238.25
+9.0%
20.8%US$290.00US$160.00US$195.714
Nov ’23US$220.52
US$217.25
-1.5%
19.9%US$270.00US$150.00US$164.004

Analyst Forecast: Target price is less than 20% higher than the current share price.


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