Latest Ratios: P/E Ratio -5.2x · EV/EBITDA 6.2x · 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 | $4.2B | $4.5B | $2.9B | $6.9B | $7.9B | $13.7B | $2.6B | $2.4B | $1.8B | $3.7B | $3.4B |
| Enterprise Value | $34.8B | $35.2B | $28.4B | $32.8B | $28.3B | $31.0B | $15.6B | $18.9B | $15.0B | $15.9B | $15.3B |
| P/E Ratio → | -5.21 | — | — | 4.21 | 2.87 | 10.67 | — | 8.08 | 10.91 | 10.32 | 20.96 |
| P/S Ratio | 0.36 | 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 | 1.27 | 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 | 6.17 | 6.70 | 5.15 | 5.65 | 4.64 | 6.78 | 6.89 | 4.83 | 4.99 | 5.24 | 5.09 |
| EV / EBIT | 27.20 | 74.51 | — | 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 | 0.34 | 0.34 | -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 | 0.2% | 0.2% | 2.4% | 13.8% | 42.0% | 10.7% | 4.5% | 2.7% | 12.0% | 5.6% | 11.3% |
| Total Shareholder Yield | 0.2% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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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 -5.2x. The historical average is 9.7x.
Avis Budget Group, Inc.'s current EV/EBITDA is 6.2x. 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 -5.2x. 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.
Key Metrics
Top Statement Risk
Leveraged fleet residual value exposure
Metrics are mathematically derived from official filings.
Low Multiples Reflect Earnings Doubt
Based on the supplied multiples, CAR trades at 6.64x trailing EV/EBITDA and 0.36x sales, a discount that may reflect market skepticism about the sustainability of its earnings base rather than a clear bargain.
The negative trailing P/E of -4.70 renders earnings-based comparison unreliable, so the 6.02x forward EV/EBITDA and 0.36x price-to-sales multiples carry more weight in the analysis. Compared with the sector's typical asset-heavy valuations, this low EV multiple suggests investors are pricing in a meaningful risk that fleet depreciation absorbs most operating cash generation. The forward P/E of 39.15 implies a sharp expected earnings recovery that the reported figures do not yet clearly support, warranting caution.
Operating Margins Swing on Fleet Costs
Operating margin ranged from 1.9% in Q1 2026 to 36.3% in Q2 2026, while net margin stayed negative in most recent quarters, indicating heavy below-the-line drag from interest and fleet-related charges.
The gap between operating and net margins across the period suggests that interest expense on fleet debt absorbs a large share of operating profit, limiting the earnings power that reaches shareholders. Gross margin compression from 51.1% to 33.4% over two quarters appears to reflect fleet depreciation pressure rather than a loss of pricing power alone. Investors should treat the strongest quarterly operating margins as cyclical peaks rather than a stable run rate.
Interest Coverage Oscillates Near Breakeven
Interest coverage swung from 154.92x in Q2 2026 to 0.02x in Q1 2026, with a negative reading in Q4 2025, a pattern suggesting debt service comfort depends heavily on the timing of operating income.
Such volatility in coverage implies that debt service is not reliably covered by operating earnings in every period, which is a concern for a business carrying a large fleet financing base. The reported net margin of -7.6% on the latest snapshot is consistent with interest costs eroding the margin of safety. Refinancing exposure on asset-backed funding warrants further investigation given these thin coverage periods.
Thin Current Ratio Leaves Little Buffer
The current ratio held between 0.64 and 0.86 across the ten quarters, indicating current liabilities consistently exceed current assets and leaving a narrow cushion against short-term obligations.
A current ratio persistently below 1.0 is common for asset-backed rental operators that fund fleet with short-dated and securitized debt, so the ratio alone does not prove distress. However, combined with cash balances of roughly $520M to $570M against multi-billion obligations, the liquidity position appears to rely on continued access to financing markets. Under a severe used-vehicle price decline, this buffer would likely prove insufficient without fleet liquidation.
Fleet Residual Values Mask Earnings Quality
The most misapplied metric for CAR is the consolidated debt-to-equity ratio, which appears to overstate corporate credit risk while obscuring the true sensitivity of carrying values to used-vehicle residuals.
Applying a standard corporate leverage framework treats fleet debt as general corporate borrowing, when much of it is ring-fenced in asset-backed structures tied to vehicle values. A more informative approach would adjust for fleet residual exposure and evaluate returns on tangible fleet capital rather than headline equity. Investors should monitor used-vehicle price trends as the primary driver of reported earnings quality.