The capital turnover (annual revenue relative to shareholder's equity) for CAR is -81.7 -- better than just 0.16% of US stocks.
Equity multiplier, or assets relative to shareholders' equity, comes in at 122.34 for Avis Budget Group Inc; that's greater than it is for 99.73% of US stocks.
Avis Budget Group Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 132.68%, greater than the shareholder yield of 97.27% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Avis Budget Group Inc, a group of peers worth examining would be MKD, WAT, GSKY, CSTM, and KODK.
Avis Budget Group provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company has three segments: North America, International, and Truck Rental. The company was founded in 1946 and is based in Parsippany, New Jersey.
CAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Avis Budget Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Avis Budget Group Inc ranked in the 92th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3073.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Avis Budget Group Inc ended up being:
13% of the company's capital comes from equity, which is greater than only 5.18% of stocks in our cash flow based forecasting set.
Avis Budget Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.84. This coverage rate is greater than that of merely 17.87% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 17. This value is greater than 97.07% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KE, ESOA, VRTV, HHR, and IIIN can be thought of as valuation peers to CAR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Shares of cruise and travel industry stocks shrank in end-of-week trading Friday. Car rental stock Avis Budget Group (NASDAQ: CAR) is likewise coasting downhill -- 3.4% -- marking its fifth-straight day of losses. Yesterday, Deutsche Bank kept the bad news coming on that one when it cut its price target on Avis Budget stock by $10, to $24 a share.
Moody's Investors Service (Moody's) has assigned ratings of (P)Aa1 (sf) to the Series 2020-2 Class A fixed rate Rental Car Asset Backed Notes, (P)A3 (sf) to the Series 2020-2 Class B fixed rate Rental Car Asset Backed Notes, and (P)Baa3 (sf) to the Series 2020-2 Class C fixed rate Rental Car Asset Backed Notes, (together with the Class A Notes and the Class B Notes, the Series 2020-2 Notes) to be issued by Avis Budget Rental Car Funding (AESOP) LLC (the issuer). The issuer is an indirect subsidiary of the sponsor, Avis Budget Car Rental, LLC (ABCR, B2 negative). ABCR is a subsidiary of Avis Budget Group, Inc. ABCR is the owner and operator of Avis Rent A Car System, LLC (Avis), Budget Rent A Car System, Inc. (Budget), Zipcar, Inc and Payless Car Rental, Inc. (Payless).