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CAR shares: your next growth investment?

The CAR Group Limited (ASX:CAR) share price is up 16.2% since the start of 2025. It's probably worth asking, 'is the CAR share price undervalued?'
The CAR Group Limited (ASX:CAR) share price is up 16.2% since the start of 2025. At the same time, the Pro Medicus Limited (ASX:PME) share price is 7.0% away from its 52-week high. This brief article explains why it could be worth adding CAR and PME shares to your ASX investing stock 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).

PME shares

Pro Medicus is an established provider of radiology software for hospitals, imaging centres and healthcare groups worldwide.

The Pro Medicus suite of products centre around radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions. These products support everything from patient scheduling and billing to fast medical imaging interpretations and analysis, making the company relevant at every stage of the radiology process.

The company’s flagship product is their Visage software, which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This wasn’t previously possible, but it now allows diagnostic decisions to be made on-the-go with the aim of improving patient outcomes.

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 $131m to $250m. CAR last reported a ROE of 8.6%.

Over the last 3 years, PME has increased revenue at a rate of 33.4% per year to hit $162m in FY24. Meanwhile, net profit has increased from $31m to $83m. PME’s last reported ROE was 50.7%.

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 PME shares. To learn more about valuation, check out one of our free online investing courses.

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