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).
JBH shares
Established in 1974, JB Hi-Fi is one of Australia’s largest retailers of electronic and home entertainment products.
The company is broadly split into three business segments, namely JB Hi-Fi Australia, JB Hi-Fi New Zealand and The Good Guys, which sells a similar range of products and was acquired in 2016.
JB Hi-Fi operates through a cost-leadership strategy meaning it competes on price against its competitors. Many of its products are often discounted resulting in much better perceived value for its customers.
CAR & JBH 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. As for ROE, CAR last reported a ROE of 8.6%.
Over the last 3 years, JBH has increased revenue at a rate of 2.5% per year to hit $9,592m in FY24. Meanwhile, net profit has fallen from $506m to $439m. As for ROE, JBH’s last reported figure was 29.5%.
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 JBH shares. To learn more about valuation, check out one of our free online investing courses.
