CAR

Avis Budget Group Inc

Consumer, Industrial/Transportation


Presented:07/25/2022
Price:$160.11
Cap:$7.73B
Current Price:$77.47
Cap:$2.76B

Presented

Date07/25/2022
Price$160.11
Market Cap$7.73B
Ent Value$33.06B
P/E Ratio4.94x
Book ValueN/A
Div Yield0%
Shares O/S48.29M
Ave Daily Vol989,410
Short Int18.57%

Current

Price$77.47
Market Cap$2.76B
Avis Budget Group, Inc. engages in the provision of vehicle sharing and rental services. It operates through the Americas and International segments. The Americas segment licenses the company’s brands to third parties for vehicle rentals and ancillary products and services in North America, South America, Central America, and the Caribbean. The International segment leases out vehicles in Europe, the Middle East, Africa, Asia, and Australasia. The company was founded by Warren E. Avis in 1946 and is headquartered in Parsippany, NJ.

Publicly traded companies mentioned herein: Avis Budget Group Inc (CAR)

Highlights

The presenter is short shares of Avis Budget Group Inc (CAR), considering his position a play on the value of used cars falling. CAR trades at $154 per share ($7.4B market cap) with ~$4B of net debt excluding vehicle debt that many investors treat as off-balance sheet, yielding an effective EV of ~$11.4B. He highlights evidence of used car values falling (Manheim Index, consumer delinquencies, OEM production trends), which leads him to a $100 price target with incremental downside to $60 per share. 

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Idea Discussion

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