KAR Auction Fair Value
KA
The fair market value of KAR stock is 2.95 USD. Relative to the market price of 16.145 USD KAR Auction is overvalued by 81.7%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
KAR Auction Valuation
Current KAR share ticker price is 16.145 USD.
The fair value level of 2.95 USD can be considered as an effective entry point for long-term investors to start investing in KAR stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 82% higher its fair value
Current price is 96% higher its minimum value
Current price is 13% lower its maximum value
Market price:
KAR stock is overvalued
It means the current price may concern as a Risky Entry Point
KAR Auction Services Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
205.39
2
Median P/E over 5 years
33.26
3
Minimum P/E over 5 years
7.35
4
Earning per share (last 12 months)
0.09 USD
Maximum value
1
x
4
=
18.22 USD
Fair value
2
x
4
=
2.95 USD
Minimum value
3
x
4
=
0.65 USD
KAR Auction Services Inc price metrics
-9.23
Annual return (geometric mean)
48.96
Risk (standard deviation) of returns
β
1.51
Beta (volatility compared to market)