Avis Budget Valuation
| CAR Stock | USD 102.67 1.03 1.01% |
At this time, the firm appears to be undervalued. Avis Budget Group shows a prevailing Real Value of $129.88 per share. The current price of the firm is $102.67. Our model approximates the value of Avis Budget Group from analyzing the firm fundamentals such as Profit Margin of 0.03 %, return on equity of -2.73, and Current Valuation of 29.84 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Avis Budget's valuation include:
Price Book 7.139 | Enterprise Value 29.8 B | Enterprise Value Ebitda 6.635 | Price Sales 0.3046 | Forward PE 3.3887 |
Undervalued
Today
Please note that Avis Budget's price fluctuation is very steady at this time. Calculation of the real value of Avis Budget Group is based on 3 months time horizon. Increasing Avis Budget's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Avis stock is determined by what a typical buyer is willing to pay for full or partial control of Avis Budget Group. Since Avis Budget is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Avis Stock. However, Avis Budget's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 102.67 | Real 129.88 | Target 234.5 | Hype 102.86 | Naive 92.55 |
The intrinsic value of Avis Budget's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Avis Budget's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Avis Budget Group helps investors to forecast how Avis stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Avis Budget more accurately as focusing exclusively on Avis Budget's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Avis Budget's intrinsic value based on its ongoing forecasts of Avis Budget's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Avis Budget's closest peers.
Avis Budget Cash |
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Avis Valuation Trend
Avis Budget's real value is important for investors to make better decisions and a more accurate overall view of Avis Budget's financial worth over time. Using both Avis Budget's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Avis Revenue by Product
Avis Budget Total Value Analysis
Avis Budget Group is currently forecasted to have company total value of 29.84 B with market capitalization of 3.61 B, debt of 26.45 B, and cash on hands of 579 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Avis Budget fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
29.84 B | 3.61 B | 26.45 B | 579 M |
Avis Budget Investor Information
About 97.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.76. Avis Budget Group recorded earning per share (EPS) of 11.21. The entity last dividend was issued on the 14th of December 2023. The firm had 1:10 split on the 5th of September 2006. Based on the key indicators related to Avis Budget's liquidity, profitability, solvency, and operating efficiency, Avis Budget Group may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 2.1 B | 3.8 B |
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Avis Budget Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Avis Budget has an asset utilization ratio of 36.87 percent. This connotes that the Company is making $0.37 for each dollar of assets. An increasing asset utilization means that Avis Budget Group is more efficient with each dollar of assets it utilizes for everyday operations.Avis Budget Ownership Allocation
The majority of Avis Budget Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Avis Budget Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Avis Budget. Please pay attention to any change in the institutional holdings of Avis Budget Group as this could imply that something significant has changed or is about to change at the company.Avis Budget Profitability Analysis
The company reported the last year's revenue of 12.01 B. Total Income to common stockholders was 1.63 B with profit before taxes, overhead, and interest of 6.01 B.Avis Budget Past Distributions to stockholders
About Avis Budget Valuation
The stock valuation mechanism determines Avis Budget's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Avis Budget Group based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Avis Budget. We calculate exposure to Avis Budget's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Avis Budget's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.3 B | 4.7 B | |
| Pretax Profit Margin | 0.16 | 0.17 | |
| Operating Profit Margin | 0.27 | 0.15 | |
| Net Profit Margin | 0.14 | 0.14 | |
| Gross Profit Margin | 0.53 | 0.88 |
A single share of Avis Budget represents a small ownership stake in the entity. As a stockholder of Avis, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Avis Budget Dividends Analysis For Valuation
Please note that Avis Budget has scaled down on payment of dividends at this time. At this time, Avis Budget's Retained Earnings are relatively stable compared to the past year. As of 11/24/2024, Retained Earnings Total Equity is likely to grow to about 3.1 B, while Price Earnings Ratio is likely to drop 3.95.
There are various types of dividends Avis Budget can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Avis shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Avis Budget Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Avis pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Avis Budget by the value of the dividends paid out.
Avis Budget Growth Indicators
Investing in growth stocks can be very risky. If the company such as Avis Budget does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 38.8 M | |
| Quarterly Earnings Growth Y O Y | -0.604 | |
| Forward Price Earnings | 3.3887 |
Avis Budget Current Valuation Indicators
Avis Budget's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Avis Budget's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Avis Budget, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Avis Budget's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Avis Budget's worth.Additional Tools for Avis Stock Analysis
When running Avis Budget's price analysis, check to measure Avis Budget's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Avis Budget is operating at the current time. Most of Avis Budget's value examination focuses on studying past and present price action to predict the probability of Avis Budget's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avis Budget's price. Additionally, you may evaluate how the addition of Avis Budget to your portfolios can decrease your overall portfolio volatility.