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Are CAR shares or FLT shares better value in 2024?

The CAR Group Limited (ASX:CAR) share price has risen 31.2% since the start of 2024. It's probably worth asking, 'is the CAR share price in the money?'
The CAR Group Limited (ASX:CAR) share price has risen 31.2% since the start of 2024. Also in 2024, the Flight Centre Travel Group Ltd (ASX:FLT) share price is 24.7% away from its 52-week high. This article explains why it could be worth popping CAR and FLT shares on your watchlist.

CAR share price in focus

Since the 1990s, CAR Group has been a leading operator of online marketplaces focused on cars, motorcycles, and other vehicles.

As a marketplace provider, CAR Group aims to simplify the buying and selling process, offering added security and convenience for both buyers and sellers. Through a blend of technology and advertising solutions, the company ensures peace of mind for users when making significant purchases.

Over the years, CAR Group has experienced steady growth and now operates globally, with a presence in markets such as Australia (carsales), South Korea (Encar), the United States (Trader Interactive), and Chile (chileautos).

FLT shares

Founded in Sydney in 1982, Flight Centre is a global travel agency with operations across more than 80 countries, operating under various brand names.

The company serves both the retail and corporate sectors, offering a range of services including tour operations, travel experiences, and hotel management.

Flight Centre differentiates itself by providing a personal touch that many online travel agencies can’t match. Their consultants manage all aspects of travel planning and are often able to secure exclusive deals for customers, fostering loyalty and repeat business.

CAR share price valuation

As a growth company, some of the trends we might investigate from CAR include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.

Since 2021, CAR has grown revenue at a rate of 37.0% per year to reach $1,099m in FY24. Over the same stretch of time, net profit has increased from $m to $250m. CAR last reported a ROE of 8.6%.

Over the last 3 years, FLT has increased revenue at a rate of 89.8% per year to hit $2,708m in FY24. Meanwhile, net profit has fallen from $433m to $140m. FLT’s last reported ROE was 11.9%.

Please keep in mind that context is important – these metrics give us some indication of company performance, but it’s just the start of valuing CAR or FLT shares. To learn more about valuation, check out one of our free online investing courses.

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