CAR (Avis Budget Group) Effective Interest Rate on Debt %: 1.55% (As of Mar. 2026)

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CAR Avis Budget Group Inc CAR
76 GF Score
Price $160.57
GF Value $131.13
Valuation Modestly Overvalued
! 9 Warning Signs
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What is Avis Budget Group Effective Interest Rate on Debt %?

Avis Budget Group CAR +2.70% 76 Effective Interest Rate on Debt % is 1.55% as of Mar. 2026. GuruFocus rates CAR with a GF Score™ of 76/100 and a GF Value™ of $131.13 (Modestly Overvalued). The stock has 9 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Avis Budget Group's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $436 Mil. Avis Budget Group's average total debt for the quarter that ended in Mar. 2026 was $28,114 Mil. Therefore, Avis Budget Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 1.55%.


Avis Budget Group  (NAS:CAR) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Avis Budget Group Effective Interest Rate on Debt % Related Terms


Avis Budget Group Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Avis Budget Group's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Avis Budget Group Effective Interest Rate on Debt % Chart

Avis Budget Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.39 1.29 1.25 1.36 1.55

Avis Budget Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.48 1.58 1.51 1.48 1.55

CAR vs GATX, WSC, EQPT: Effective Interest Rate on Debt % Comparison

For the Rental & Leasing Services subindustry, Avis Budget Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Avis Budget Group Effective Interest Rate on Debt % vs Business Services Industry

For the Business Services industry and Industrials sector, Avis Budget Group's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Avis Budget Group's Effective Interest Rate on Debt % falls into.


CAR
76GF Score
Avis Budget Group Inc CAR
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Avis Budget Group Effective Interest Rate on Debt % Calculation

Avis Budget Group's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -422/( (26041+28555)/ 2 )
=-1  *  -422/27298
=1.55 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=25393 + 648
=26041

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=27851 + 704
=28555

Avis Budget Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -436/( (28555+27672)/ 2 )
=-1  *  -436/28113.5
=1.55 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=27851 + 704
=28555

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=27006 + 666
=27672

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 1.55% mean?
Avis Budget Group (CAR) has a Effective Interest Rate on Debt % of 1.55% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Avis Budget Group and its competitors.
Is Avis Budget Group's Effective Interest Rate on Debt % too high?
Avis Budget Group's current Effective Interest Rate on Debt % is 1.55%. Overall, Avis Budget Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avis Budget Group's Effective Interest Rate on Debt % compare to GATX and WSC?
Avis Budget Group's Effective Interest Rate on Debt % of 1.55% can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Business Services company?
A good Effective Interest Rate on Debt % depends on the Business Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Avis Budget Group and its competitors. Avis Budget Group's current Effective Interest Rate on Debt % is 1.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avis Budget Group stock overvalued right now?
Based on GuruFocus' analysis, Avis Budget Group (CAR) is currently considered Modestly Overvalued. The stock's GF Value™ is $131.13, compared to a current price of $160.57 — trading 22.5% above its estimated fair value. The current Effective Interest Rate on Debt % is 1.55%. Avis Budget Group's overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Avis Budget Group (CAR), the current Effective Interest Rate on Debt % is 1.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Avis Budget Group (CAR) Overvalued in 2026?

Based on GuruFocus' analysis, Avis Budget Group stock appears to be overvalued. The current stock price of $160.57 is trading 22.5% above its estimated GF Value™ of $131.13. GuruFocus considers Avis Budget Group to be Modestly Overvalued.

Key valuation signals for CAR:

  • Effective Interest Rate on Debt %: 1.55%
  • GF Value™: $131.13 vs. price of $160.57 (22.5% above fair value)
  • GF Score™: 76/100 with 9 warning signs

No single metric tells the full story. See the CAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Avis Budget Group Business Description

Address 379 Interpace Parkway, Parsippany, NJ, USA, 07054
Avis Budget Group Inc is a provider of mobility solutions through its three brands Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. Its brands offer a range of options, from car and truck rental to car sharing. The company operates in two reportable business segments: Americas - (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly. International - consisting of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly.
76GF Score

Get the complete analysis for CAR

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$160.57
Price
$131.13
GF Value