The CAR Group Limited (ASX:CAR) share price has risen 26.7% since the start of 2024. Also in 2024, the Flight Centre Travel Group Ltd (ASX:FLT) share price is 28.9% away from its 52-week high. This article explains why it could be worth popping CAR and FLT shares on your watchlist.
CAR share price in focus
Founded in 1997,
Since the 1990s, CAR Group has been an operator of online marketplaces specialising in cars, motorcycles, and other vehicles.
As a marketplace provider, CAR Group aims to streamline the buying and selling process for both parties and provide added security and confidence to the process. The combination of technology and advertising solutions gives both sellers and buyers peace of mind when making a big purchase.
The company has steadily grown over the last few years and now has global reach including in Australia (carsales), South Korea (Encar), the US (Trader Interactive) and Chile (chileautos).
FLT shares
Founded in Sydney in 1982, Flight Centre is a travel agency that operates under multiple names across over 80 countries.
It’s involved in both the retail and corporate sectors and also offers additional services such as tour operations, travel experiences and hotel management.
Flight Centre aims to offer a personal touch that many online travel agencies might not have. Consultants are able to handle all the work involved and are often able to find exclusive deals for their customers, which keeps them coming back.
CAR 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 $m to $250m. CAR last reported a ROE of 8.6%.
Over the last 3 years, FLT has increased revenue at a rate of 89.8% per year to hit $2,708m in FY24. Meanwhile, net profit has fallen from $433m to $140m. FLT’s last reported ROE was 11.9%.
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 FLT shares. To learn more about valuation, check out one of our free online investing courses.
