CAR share price in focus
Founded in 1997, Carsales.com is an online marketplace that specialises in car, motorbike, and boat advertisements in Australia.
As a marketplace provider, Carsales.com aims to simplify and improve the buying and selling process for both parties. Large online transactions are also safer than cash-based transactions as funds can be held in escrow and only released when both parties are satisfied with the transaction.
The company has grown to now have over 600 employees and serves various countries outside of Australia, many of which are in South America and Southeast Asia.
ALL shares
Founded by Len Ainsworth in 1953, Aristocrat Leisure is an Australian gambling machine operator that is headquartered in Sydney.
Aristocrat is currently the largest gambling machine manufacturer in Australia and one of the largest manufacturers of slot machines around the world. However, that’s just one part of the business. Aristocrat also makes online games. This segment has grown steadily to make up nearly half its total revenue.
CAR share price valuation
As a growth company, one way to put a rough guesstimate on the CAR share price could be to compare its price-to-sales multiple over time. Currently, CAR Group Limited shares have a price-sales ratio of 13.03x, compared to its 5-year average of 14.28x, meaning its shares are trading below 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. Please keep in mind that context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric.
The ALL share price currently trades at a price-sales ratio of 5.74x, which compares to its 5-year long-term average of 4.87x. So, its shares are trading higher than their historical average. However, 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! Just remember there are many different ways to value a share, like Aristocrat Leisure Limited.
