CAR Group (CAR.AX)
Communications · ASX · Australia
Fundamentals
Valuation and ratings
CAR Group trades at A$26.05, close to the A$24.88 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 70 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About CAR Group
CAR Group Limited engages in the online vehicle marketplace business in Australia, New Zealand, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, and North America. The company operates through six segments: Australia Online Advertising Services; Australia Data, Research and Services; Investments; North America; Latin America; and Asia segments. It offers classified advertising that allows private and dealer customers to advertise automotive and non-automotive goods and services for sale across the carsales network; products, including subscriptions, lead fees, listing fees, and priority placement services; and display advertising services, such as placing advertisements for corporate customers comprising automotive manufacturers and finance companies. The company also provides software as a service, research and reporting, valuation, appraisals, and website development and hosting services, as well as photography services. In addition, it offers vehicle inspection services; operates digital automotive and non-automotive marketplaces; and offers automotive data and advertising services. The company was formerly known as carsales.com Ltd and changed its name to CAR Group Limited in November 2023. CAR Group Limited was incorporated in 1996 and is headquartered in Melbourne, Australia.
CAR.AX passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is CAR Group (CAR.AX) undervalued?
Against our discounted cash flow estimate of A$24.88, CAR.AX at A$26.05 is 4% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CAR.AX's P/E ratio?
CAR.AX trades at 33.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for CAR.AX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.