Kar Auction Services operates worldwide vehicle auction services and provides related services. The company was founded in 2006 and is based in Carmel, Indiana.
KAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for KAR Auction Services Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that KAR Auction Services Inc ranked in the 50th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 29.67%. In terms of the factors that were most noteworthy in this DCF analysis for KAR, they are:
The company has produced more trailing twelve month cash flow than 69.64% of its sector Consumer Cyclical.
45% of the company's capital comes from equity, which is greater than just 24.54% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 55% of the company's capital (with equity being the remaining amount). Approximately 75.42% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KAR, try BC, FL, GFASY, LEG, and ALSN.
KAR Auction (NYSE:KAR) is scheduled to announce Q2 earnings results on Tuesday, August 4th, after market close.The consensus EPS Estimate is -$0.11 and the consensus Revenue Estimate is $420.08M (-41.6% Y/Y).Over the last 2 years, KAR has beaten EPS estimates 38% of the time and has beaten revenue estimates 88% of...
Last week, ADESA, a subsidiary of KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), hosted a single digital auction event with vehicles in 22 different locations using the company's Simulcast+SM technology. The sale was hosted on behalf of The Hertz Corporation and sold vehicles to buyers in 19 states across the country. Simulcast+ is ADESA's new digital auction platform that simulates the competitive live auction environment in a fully digitized, highly automated, live streaming format. The technology allows vehicles to be offered from an auction, distribution center, dealership or multiple sites and facilitates fast, competitive bidding for buyers.
In this article we will check out the progression of hedge fund sentiment towards KAR Auction Services Inc (NYSE:KAR) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on
KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), a global vehicle remarketing and technology solutions provider, announces the launch of the company's new buyer and seller insights available on KARglobal.com. The site is powered by DRIVIN®, KAR's data science and analytics engine, and features interactive dashboards displaying retail and wholesale trends from across the remarketing ecosystem. The insights were developed using DRIVIN's proprietary algorithms and KAR's broad portfolio of retail, wholesale and other industry, economic and behavioral data sources. Originally intended for internal use, the company is making this real-time information public to help customers navigate the ongoing recovery and keep their businesses moving forward.