CAR share price in focus
Since the 1990s, CAR Group has been an operator of online marketplaces specialising in cars, motorcycles, and other vehicles.
As a marketplace provider, CAR Group aims to streamline the buying and selling process while providing added security and convenience for both parties. The combination of technology and advertising solutions gives both sellers and buyers peace of mind when making a big purchase.
The company has steadily grown over the last few years and now has global reach including in Australia (carsales), South Korea (Encar), the US (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, one way to put a broad estimate on the CAR share price could be to compare its price-to-sales multiple over time. This can tell us how the company has historically been valued relative to its total revenue.
Currently, CAR Group Limited shares have a price-sales ratio of 13.76x, compared to its 5-year average of 14.28x, meaning its shares are trading lower than their historical average. This could mean that the share price has fallen, or sales have increased, or both. In the case of CAR, revenue has been growing over the last 3 years. Of course, context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric, but this can be a rough starting point.
The FLT share price currently trades at a price-sales ratio of 1.39x, which compares to its 5-year long-term average of 3.42x. So, FLT shares are trading lower than their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like Flight Centre Travel Group Ltd.
