KAR Auction Services Inc (KAR) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
KAR Auction Services Inc stock (KAR) is currently trading at $30.88. KAR Auction Services Inc PE ratio is 35.49. KAR Auction Services Inc PS ratio (Price-to-Sales) is 1.73. Analyst consensus price target for KAR is $31.81. WallStSmart rates KAR as Moderate Buy.
- KAR PE ratio analysis and historical PE chart
- KAR PS ratio (Price-to-Sales) history and trend
- KAR intrinsic value — DCF, Graham Number, EPV models
- KAR stock price prediction 2025 2026 2027 2028 2029 2030
- KAR fair value vs current price
- KAR insider transactions and insider buying
- Is KAR undervalued or overvalued?
- KAR Auction Services Inc financial analysis — revenue, earnings, cash flow
- KAR Piotroski F-Score and Altman Z-Score
- KAR analyst price target and Smart Rating
KAR Auction Services Inc
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KAR Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · KAR Auction Services Inc (KAR)
KAR appears undervalued based on the Graham Formula, trading 24% below its estimated fair value of $40.72.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
KAR Auction Services Inc (KAR) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, eps growth. Concerns around return on equity. Overall metrics suggest strong investment potential with favorable risk/reward.
KAR Auction Services Inc (KAR) Key Strengths (5)
Earnings per share surging 108.30% year-over-year
102.81% of shares held by major funds and institutions
Good growth relative to its price
Paying $1.73 for every $1 of annual revenue
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
KAR Auction Services Inc (KAR) Areas to Watch (5)
Low profitability relative to shareholder equity
Modest revenue growth at 8.40%
Thin profit margins with limited profitability
Decent operational efficiency, solid but not exceptional
Fairly priced relative to book value
Supporting Valuation Data
KAR Auction Services Inc (KAR) Detailed Analysis Report
Overall Assessment
This company scores 65/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 5 register as strengths (avg 8.6/10) while 5 fall into concern territory (avg 4.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., PEG Ratio. Valuation metrics including PEG Ratio (1.34), Price/Sales (1.73) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 108.30%.
The Bear Case
The primary concerns are Return on Equity, Revenue Growth, Profit Margin. Some valuation metrics including Price/Book (2.11) suggest expensive pricing. Growth concerns include Revenue Growth at 8.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 8.57%, Operating Margin at 16.70%, Profit Margin at 9.00%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.57% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 8.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Return on Equity, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
KAR Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
KAR's Price-to-Sales ratio of 1.83x trades at a 49% premium to its historical average of 1.23x (99th percentile). The current valuation is 5% below its historical high of 1.93x set in Aug 2018, and 308% above its historical low of 0.45x in Mar 2020. Over the past 12 months, the PS ratio has expanded from ~1.1x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for KAR Auction Services Inc (KAR) · CONSUMER CYCLICAL › AUTO & TRUCK DEALERSHIPS
The Big Picture
KAR Auction Services Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 1.9B with 8% growth year-over-year. Profit margins are thin at 9.0%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 111M in free cash flow and 126M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can KAR Auction Services Inc push profit margins above 15% as the business scales?
Sector dynamics: monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive moves, and regulatory changes that could impact KAR Auction Services Inc.
Bottom Line
KAR Auction Services Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About KAR Auction Services Inc(KAR)
NYSE
CONSUMER CYCLICAL
AUTO & TRUCK DEALERSHIPS
USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.