Latest Ratios: P/E Ratio -6.3x · EV/EBITDA 6.9x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.6B | $4.5B | $2.9B | $6.9B | $7.9B | $13.7B | $2.6B | $2.4B | $1.8B | $3.7B | $3.4B |
| Enterprise Value | $36.2B | $35.2B | $28.4B | $32.8B | $28.3B | $31.0B | $15.6B | $18.9B | $15.0B | $15.9B | $15.3B |
| P/E Ratio → | -6.27 | — | — | 4.21 | 2.87 | 10.67 | — | 8.08 | 10.91 | 10.32 | 20.96 |
| P/S Ratio | 0.48 | 0.39 | 0.24 | 0.57 | 0.66 | 1.47 | 0.49 | 0.27 | 0.20 | 0.42 | 0.40 |
| P/B Ratio | — | — | — | — | — | — | — | 3.72 | 4.35 | 6.49 | 15.49 |
| P/FCF | — | — | — | — | 13.77 | — | 0.67 | — | — | 7.25 | 7.10 |
| P/OCF | 1.70 | 1.37 | 0.81 | 1.80 | 1.69 | 3.93 | 3.81 | 0.94 | 0.69 | 1.41 | 1.30 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.02 | 2.41 | 2.73 | 2.36 | 3.33 | 2.89 | 2.06 | 1.64 | 1.80 | 1.77 |
| EV / EBITDA | 6.90 | 6.70 | 5.15 | 5.65 | 4.64 | 6.78 | 6.89 | 4.83 | 4.99 | 5.24 | 5.09 |
| EV / EBIT | 28.29 | 27.45 | — | 10.99 | 6.52 | 13.74 | — | 23.13 | 19.61 | 23.55 | 18.04 |
| EV / FCF | — | — | — | — | 49.10 | — | 3.95 | — | — | 31.04 | 31.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.4% | 24.4% | 25.4% | 32.7% | 39.8% | 36.4% | 11.0% | 24.6% | 24.5% | 24.6% | 25.4% |
| Operating Margin | 11.0% | 11.0% | 12.7% | 19.6% | 27.4% | 22.4% | -5.5% | 8.4% | 8.4% | 9.4% | 10.2% |
| Net Profit Margin | -7.6% | -7.6% | -15.4% | 13.6% | 23.0% | 13.8% | -12.7% | 3.3% | 1.8% | 4.1% | 1.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | -273.1% | 56.4% | 33.4% | 90.9% | 49.4% |
| ROA | -2.9% | -2.9% | -5.7% | 5.5% | 11.4% | 6.4% | -3.3% | 1.4% | 0.9% | 2.0% | 0.9% |
| ROIC | 3.8% | 3.8% | 4.6% | 7.8% | 13.4% | 10.5% | -1.5% | 3.7% | 4.4% | 5.0% | 5.4% |
| ROCE | 4.5% | 4.5% | 5.2% | 8.7% | 15.1% | 11.7% | -1.6% | 3.9% | 4.5% | 5.2% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | 26.10 | 33.29 | 22.37 | 56.11 |
| Debt / EBITDA | 5.94 | 5.94 | 4.73 | 4.56 | 3.43 | 3.90 | 6.03 | 4.38 | 4.60 | 4.22 | 4.11 |
| Net Debt / Equity | — | — | — | — | — | — | — | 25.05 | 31.79 | 21.29 | 53.90 |
| Net Debt / EBITDA | 5.84 | 5.84 | 4.63 | 4.46 | 3.34 | 3.78 | 5.73 | 4.20 | 4.39 | 4.01 | 3.95 |
| Debt / FCF | — | — | — | — | 35.32 | — | 3.28 | — | — | 23.79 | 24.71 |
| Interest Coverage | 0.91 | 0.91 | -3.73 | 10.08 | 17.34 | 10.34 | -0.68 | 1.54 | 4.06 | 3.60 | 4.19 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.72 | 0.72 | 0.75 | 0.80 | 0.73 | 0.77 | 0.87 | 0.96 | 1.27 | 1.26 | 1.03 |
| Quick Ratio | 0.72 | 0.72 | 0.75 | 0.80 | 0.73 | 0.77 | 0.87 | 0.96 | 1.27 | 1.26 | 1.03 |
| Cash Ratio | 0.18 | 0.18 | 0.20 | 0.21 | 0.22 | 0.22 | 0.34 | 0.31 | 0.36 | 0.38 | 0.28 |
| Asset Turnover | — | 0.36 | 0.39 | 0.36 | 0.46 | 0.41 | 0.31 | 0.38 | 0.47 | 0.50 | 0.49 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 35.21 | 31.74 | 33.19 | 28.97 | 39.70 | 53.65 | 43.14 | 45.41 | 45.21 | 40.51 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | 5.2% | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | 21.8% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 23.7% | 34.8% | 9.4% | — | 12.4% | 9.2% | 9.7% | 4.8% |
| FCF Yield | — | — | — | — | 7.3% | — | 150.2% | — | — | 13.8% | 14.1% |
| Buyback Yield | 0.1% | 0.2% | 2.4% | 13.8% | 42.0% | 10.7% | 4.5% | 2.7% | 12.0% | 5.6% | 11.3% |
| Total Shareholder Yield | 0.1% | 0.2% | 2.4% | 19.0% | 42.0% | 10.7% | 4.5% | 2.7% | 12.0% | 5.6% | 11.3% |
| Shares Outstanding | — | $35M | $36M | $39M | $48M | $66M | $71M | $76M | $80M | $85M | $93M |
Residual value and leverage
According to current market data, CAR trades at a forward P/E of 34.78, a multiple that appears disconnected from its negative net margin of -7.63% and suggests investors are pricing in a recovery that remains highly contingent on volatile used vehicle residual values.
The valuation gap between the trailing P/E of -6.59 and the forward estimate implies an expectation of significant earnings normalization that may not materialize if fleet depreciation costs remain elevated. Compared to broader travel services, the current EV/EBITDA of 6.96 suggests the market views the company as a capital-intensive industrial play rather than a high-growth mobility provider.
Based on reported figures, ROIC has trended downward from 2.1% in 2025Q3 to a marginal 0.1% in 2026Q1, indicating that the company is struggling to generate returns that exceed its cost of capital in the current high-interest rate environment.
The erosion of ROIC highlights the difficulty of maintaining efficient capital deployment when fleet acquisition costs are rising and utilization rates are under pressure. This trend suggests that the company's historical strategy of aggressive fleet expansion may be yielding diminishing returns as the cost of debt service outpaces operational gains.
As reported in financial statements, the company's asset turnover ratio has remained stagnant at approximately 0.08 to 0.11 over the last ten quarters, reflecting a structural inability to accelerate revenue generation relative to its massive, capital-intensive fleet investment.
The consistent DSO hovering around 34-42 days suggests that while the company maintains standard collection cycles, it lacks the operational leverage to improve its cash conversion cycle significantly. This lack of efficiency in asset utilization warrants further investigation into whether the current fleet size is optimized for existing demand levels.
According to recent SEC filings, the company's interest coverage ratio has plummeted to 0.14 in 2026Q1, a sharp decline from 6.93 in 2024Q3, which indicates that the firm's ability to service its debt obligations is becoming increasingly precarious under current operating conditions.
The D/EBITDA ratio, which has climbed as high as 27.63, underscores a reliance on debt that leaves little room for operational volatility. Investors should monitor these leverage metrics closely, as the current interest burden appears to be consuming the majority of the company's operating income, leaving minimal buffer for unexpected market shocks.
Based on an analysis of the business model, the P/E ratio is a fundamentally flawed metric for CAR because it fails to account for the massive, non-cash depreciation charges and interest expenses inherent in the company's asset-backed financing structure.
Analysts should instead focus on EV/EBITDA or adjusted free cash flow, as these metrics better capture the underlying cash-generating capacity of the fleet before the distorting effects of accounting depreciation and interest on fleet debt. Relying on P/E obscures the reality that the company's earnings are highly sensitive to management's residual value assumptions.
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Quick answers to the most common questions about buying CAR stock.
Avis Budget Group, Inc.'s current P/E ratio is -6.3x. The historical average is 9.7x.
Avis Budget Group, Inc.'s current EV/EBITDA is 6.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.6x.
Based on historical data, Avis Budget Group, Inc. is trading at a P/E of -6.3x. Compare with industry peers and growth rates for a complete picture.
Avis Budget Group, Inc. has 24.4% gross margin and 11.0% operating margin. Operating margin between 10-20% is typical for established companies.
Avis Budget Group, Inc.'s Debt/EBITDA ratio is 5.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.