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Avis Budget Group (NAS:CAR) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Avis Budget Group Forward PE Ratio Related Terms
Avis Budget Group Forward PE Ratio Historical Data
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The historical data trend for Avis Budget Group's Forward PE Ratio 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 Forward PE Ratio Chart
Avis Budget Group Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
9.85
10.68
13.89
6.39
9.50
12.06
5.54
8.23
7.49
16.65
Avis Budget Group Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
9.85
7.41
10.10
9.78
10.68
8.37
8.24
11.64
13.89
14.37
8.97
8.21
6.39
9.50
9.13
6.57
9.50
3.37
20.92
12.67
12.06
12.42
4.95
6.43
5.54
11.61
7.39
7.23
8.23
5.69
7.49
8.39
17.89
16.31
16.65
36.80
CAR vs GATX, WSC, EQPT: Forward PE Ratio Comparison
For the Rental & Leasing Services subindustry, Avis Budget Group's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Avis Budget Group's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Avis Budget Group (CAR) has a Forward PE Ratio of 58.32 as of Jul. 22, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Avis Budget Group and its competitors. According to the industry distribution chart, Avis Budget Group ranks #400 out of 414 companies in the Business Services industry, placing it in the top 96.6%.
Is Avis Budget Group's Forward PE Ratio too high?
Avis Budget Group's current Forward PE Ratio is 58.32. The Business Services industry median Forward PE Ratio is 13.00. Avis Budget Group's value of 58.32 is 348.8% above this industry median. Based on the distribution chart, Avis Budget Group ranks #400 out of 414 companies in the Business Services industry, which is in the bottom quartile relative to peers. 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 Forward PE Ratio compare to GATX and WSC?
According to the Business Services industry distribution chart, Avis Budget Group ranks #400 out of 414 companies for Forward PE Ratio. This places Avis Budget Group in the lower half of its industry. The industry median Forward PE Ratio is 13.00. Avis Budget Group's value of 58.32 is 348.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Business Services company?
The median Forward PE Ratio among Business Services companies is 13.00, based on 414 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Avis Budget Group's current Forward PE Ratio of 58.32 is 348.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Avis Budget Group and its competitors. For the Business Services industry, the median Forward PE Ratio is 13.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avis Budget Group's current Forward PE Ratio is 58.32. 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 $131.15, compared to a current price of $165.32 — trading 26.1% above its estimated fair value. The current Forward PE Ratio is 58.32 and 348.8% above the Business Services industry median of 13.00. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Avis Budget Group (CAR), the current Forward PE Ratio is 58.32 as of Jul. 22, 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 $165.32 is trading 26.1% above its estimated GF Value™ of $131.15.
GuruFocus considers Avis Budget Group to be Modestly Overvalued.
Key valuation signals for CAR:
Forward PE Ratio: 58.32
GF Value™: $131.15 vs. price of $165.32 (26.1% above fair value)
Industry Position: 348.8% above the Business Services median (#400 of 414)
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 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
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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