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Is this Large Market Cap Stock target price reasonable for Avis Budget Group, Inc. (NASDAQ:CAR)?

The company in question is, Avis Budget Group, Inc. (NASDAQ:CAR) currently with a stock price of 31.3 (-0.82% today). The market cap for Avis Budget Group, Inc. is 2965.69, and is in the sector Services, and Rental & Leasing Services industry. The target price for Avis Budget Group, Inc. is 44.25. Currently Avis Budget Group, Inc. is trading with a P/E of 20.13, and a forward P/E of 9.13. Average volume for Avis Budget Group, Inc. is 2216.94 and so far today it is 713816.

Performance in the last year for Avis Budget Group, Inc. has been -36.02%. For EPS growth, Avis Budget Group, Inc. has seen a growth of 34.00%, and is looking to grow in the next year to 13.50%. More long term stats show that EPS growth has been 44.00% over the last five years and could be 10.00% for the next five years. Avis Budget Group, Inc. has seen sales growth quarter over quarter at 3.20%, with EPS growth quarter over quarter at -71.80%. The 20-day simple moving average is -13.02%, with the 200-day simple moving average coming to 2.23%.

Since the IPO date for Avis Budget Group, Inc. on the 01/12/1990, Avis Budget Group, Inc. has seen performance year to date to be -13.03%. With Avis Budget Group, Inc. trading at 31.3, the dividend yield is *TBA, and the EPS is 1.57.

So could Avis Budget Group, Inc., be undervalued? Well as said before P/E is 20.13. The PEG is 2.01, P/S is 0.34 and the P/B is at 8.74. The P/cash is 5.63, with P/free cash flow at *TBA.

Avis Budget Group, Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1.2. This is with long term debt/equity at 43.27, and total debt/equity at 43.35.

In terms of margins, Avis Budget Group, Inc. has a gross margin of 49.00%, an operating margin of 8.60% and a profit margin of 1.90%.Payout ratio for Avis Budget Group, Inc. is 0.00%. Return on assets come to 0.90% with return on investment coming to 5.60%.

Insider ownership for Avis Budget Group, Inc., is at 2.20% and institutional ownership comes to *TBA. Outstanding shares are at 93.97. While shares float is 88.85. The float short is currently 16.73%, and short ratio is 6.71.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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