KAR Auction Valuation
| XKR Stock | EUR 18.80 0.40 2.17% |
At this time, the entity appears to be fairly valued. KAR Auction Services secures a last-minute Real Value of €18.86 per share. The latest price of the entity is €18.8. Our model forecasts the value of KAR Auction Services from evaluating the entity fundamentals such as Return On Asset of 0.0139, current valuation of 1.78 B, and Profit Margin of 0.16 % as well as inspecting its technical indicators and probability of bankruptcy.
Fairly Valued
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 18.8 | Real 18.86 | Hype 18.8 | Naive 18.21 |
The real value of KAR Stock, also known as its intrinsic value, is the underlying worth of KAR Auction Services Company, which is reflected in its stock price. It is based on KAR Auction's financial performance, growth prospects, management team, or industry conditions. 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, or news.
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: KAR Auction Total Value Analysis
KAR Auction Services is at this time estimated to have takeover price of 1.78 B with market capitalization of 1.47 B, debt of 205.3 M, and cash on hands of 621.6 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the KAR Auction fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.78 B | 1.47 B | 205.3 M | 621.6 M |
KAR Auction Investor Information
About 98.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 0.94. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. KAR Auction Services has Price/Earnings (P/E) ratio of 223.21. The entity recorded a loss per share of 0.09. The firm last dividend was issued on the 19th of March 2020. Based on the analysis of KAR Auction's profitability, liquidity, and operating efficiency, KAR Auction Services is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.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 29.68 percent. This implies that the Company is making €0.3 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
KAR Auction Services holds a total of 108.91 Million outstanding shares. 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. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.KAR Auction Profitability Analysis
The company reported the revenue of 1.52 B. Net Income was 241.2 M with profit before overhead, payroll, taxes, and interest of 685.1 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates KAR Auction's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in KAR Auction and how it compares across the competition.
About KAR Auction Valuation
The stock valuation mechanism determines KAR Auction's current worth on a weekly basis. Our 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.KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. KAR Auction Services, Inc. was founded in 2006 and is headquartered in Carmel, Indiana. KAR AUCTION operates under Specialty Retail classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8800 people.
8 Steps to conduct KAR Auction's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates KAR Auction's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct KAR Auction's valuation analysis, follow these 8 steps:- Gather financial information: Obtain KAR Auction's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine KAR Auction's revenue streams: Identify KAR Auction's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research KAR Auction's industry and market trends, including the size of the market, growth rate, and competition.
- Establish KAR Auction's growth potential: Evaluate KAR Auction's management, business model, and growth potential.
- Determine KAR Auction's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate KAR Auction's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary 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.
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