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).
PME shares
Founded in 1983, Pro Medicus is a provider of radiology IT software serving hospitals, imaging centres and healthcare groups worldwide.
The company’s suite of products focuses on Radiology Information Systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualization solutions. These tools support various functions, from patient scheduling and billing to rapid medical imaging interpretation and analysis.
Pro Medicus’ key value proposition lies in its flagship Visage software, which enables radiologists to remotely view large image files generated by X-rays on mobile devices. This capability allows diagnostic decisions to be made on-the-go, potentially improving patient outcomes by providing timely and accessible information.
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 13.00x, 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 PME share price currently trades at a price-sales ratio of 164.15x, which compares to its 5-year long-term average of 82.69x. So, its shares are trading above 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 Pro Medicus Limited.
