0R15 11395.0 -4.4043% 0R1E 9100.0 1.1111% 0M69 None None% 0R2V 237.0 2.5974% 0QYR 1354.0 2.9266% 0QYP 457.0 0.3293% 0RUK None None% 0RYA 1460.0 1.2483% 0RIH 187.8 -0.186% 0RIH 187.4 -0.213% 0R1O 197.0 9862.0733% 0R1O None None% 0QFP None None% 0M2Z 290.35 -0.2405% 0VSO 29.08 -18.3261% 0R1I None None% 0QZI 504.0 -2.0408% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 172.35 -89.9621%

stocks

Is It Too Late To Consider Buying CAR Group Limited (ASX:CAR)? - Kalkine

CAR Group Limited (ASX:CAR), is not the largest company out there, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$36.79 and falling to the lows of AU$33.15. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CAR Group's current trading price of AU$34.76 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CAR Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for CAR Group

Is CAR Group Still Cheap?

CAR Group appears to be overvalued by 21% at the moment, based on our discounted cash flow valuation. The stock is currently priced at AU$34.76 on the market compared to our intrinsic value of A$28.69. This means that the buying opportunity has probably disappeared for now. In addition to this, it seems like CAR Group’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from CAR Group? earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 24% over the next couple of years, the future seems bright for CAR Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in CAR’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CAR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on CAR for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for CAR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.



So while earnings quality is important, it's equally important to consider the risks facing CAR Group at this point in time. At Simply Wall St, we found 3 warning signs for CAR Group and we think they deserve your attention.

If you are no longer interested in CAR Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer:
This information, including any data, is sourced from Unicorn Data Services SAS, trading as EOD Historical Data (“EODHD”) on ‘as is’ basis, using their API. The information and data provided on this page, as well as via the API, are not guaranteed to be real-time or accurate. In some cases, the data may include analyst ratings or recommendations sourced through the EODHD API, which are intended solely for general informational purposes.
This information does not consider your personal objectives, financial situation, or needs. Kalkine does not assume any responsibility for any trading losses you might incur as a result of using this information, data, or any analyst rating or recommendation provided. Kalkine will not accept any liability for any loss or damage resulting from reliance on the information, including but not limited to data, quotes, charts, analyst ratings, recommendations, and buy/sell signals sourced via the API.
Please be fully informed about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment. Kalkine does not provide any warranties regarding the information on this page, including, without limitation, warranties of merchantability or fitness for a particular purpose or use.

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