KAR Auction Valuation
| KAR Stock | USD 19.94 0.10 0.50% |
At this time, the entity appears to be overvalued. KAR Auction Services secures a last-minute Real Value of $18.56 per share. The latest price of the entity is $19.94. Our model forecasts the value of KAR Auction Services from evaluating the entity fundamentals such as Current Valuation of 2.33 B, profit margin of 0.04 %, and Return On Asset of 0.0342 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting KAR Auction's valuation include:
Price Book 1.6054 | Enterprise Value 2.3 B | Enterprise Value Ebitda 6.4856 | Price Sales 1.2623 | Forward PE 21.4592 |
Overvalued
Today
Please note that KAR Auction's price fluctuation is not too volatile at this time. Calculation of the real value of KAR Auction Services is based on 3 months time horizon. Increasing KAR Auction'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 KAR stock is determined by what a typical buyer is willing to pay for full or partial control of KAR Auction Services. Since KAR Auction is currently traded on the exchange, buyers and sellers on that exchange determine the market value of KAR Stock. However, KAR Auction'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 19.94 | Real 18.56 | Target 18.14 | Hype 20.2 | Naive 18.95 |
The intrinsic value of KAR Auction'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 KAR Auction'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 KAR Auction Services helps investors to forecast how KAR 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 KAR Auction more accurately as focusing exclusively on KAR Auction'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 KAR Auction's intrinsic value based on its ongoing forecasts of KAR Auction's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against KAR Auction's closest peers.
KAR Auction Cash |
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KAR Valuation Trend
KAR Auction's real value is important for investors to make better decisions and a more accurate overall view of KAR Auction's financial worth over time. Using both KAR Auction'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.
KAR Revenue by Product
KAR Auction Total Value Analysis
KAR Auction Services is now forecasted to have company total value of 2.33 B with market capitalization of 2.13 B, debt of 427.4 M, and cash on hands of 225.7 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 KAR Auction fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.33 B | 2.13 B | 427.4 M | 225.7 M |
KAR Auction Investor Information
About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.61. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. KAR Auction Services has Price/Earnings To Growth (PEG) ratio of 1.34. The entity last dividend was issued on the 19th of March 2020. The firm had 2642:1000 split on the 28th of June 2019. Based on the analysis of KAR Auction's profitability, liquidity, and operating efficiency, KAR Auction Services may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.KAR Auction Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. KAR Auction has an asset utilization ratio of 34.81 percent. This connotes that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that KAR Auction Services is more efficient with each dollar of assets it utilizes for everyday operations.KAR Auction Ownership Allocation
The majority of KAR Auction outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in KAR Auction Services to benefit from reduced commissions. Thus, institutional holders are subject to a different set of regulations than regular investors in KAR Auction Services. Please pay attention to any change in the institutional holdings of KAR Auction as this could imply that something significant has changed or is about to change at the company. Please note that on May 10, 2019, Representative John Rutherford of US Congress acquired under $15k worth of KAR Auction Services's common stock.KAR Auction Profitability Analysis
The company reported the last year's revenue of 1.65 B. Reported Net Loss for the year was (154.1 M) with profit before taxes, overhead, and interest of 685.1 M.About KAR Auction Valuation
The stock valuation mechanism determines KAR Auction's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of KAR Auction Services based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of KAR Auction. We calculate exposure to KAR Auction's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of KAR Auction's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 777.5 M | 1.1 B | |
| Pretax Profit Margin | (0.09) | (0.08) | |
| Net Loss | (0.09) | (0.09) | |
| Gross Profit Margin | 0.47 | 0.34 |
KAR Auction Growth Indicators
Investing in growth stocks can be very risky. If the company such as KAR Auction 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 | 109.1 M | |
| Quarterly Earnings Growth Y O Y | 11 | |
| Forward Price Earnings | 21.4592 |
KAR Auction Current Valuation Indicators
KAR Auction'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 KAR Auction'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 KAR Auction, 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 KAR Auction'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 KAR Auction's worth.Additional Tools for KAR Stock Analysis
When running KAR Auction's price analysis, check to measure KAR Auction'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 KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.