* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Avis Budget Group's PEG Ratio or its related term are showing as below:
During the past 13 years, Avis Budget Group's highest PEG Ratio was 3.46. The lowest was 0.01. And the median was 0.77.
CAR's PEG Ratio is not ranked *
in the Business Services industry.
Industry Median: 1.17 * Ranked among companies with meaningful PEG Ratio only.
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Avis Budget Group (NAS:CAR) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Avis Budget Group PEG Ratio Related Terms
Avis Budget Group PEG Ratio Historical Data
* Premium members only.
The historical data trend for Avis Budget Group's PEG 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.
For the Rental & Leasing Services subindustry, Avis Budget Group's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Avis Budget Group's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Avis Budget Group (CAR) has a PEG Ratio of 0.00 as of Jun. 30, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Avis Budget Group and its competitors. Over the past decade, Avis Budget Group's PEG Ratio has ranged from 0.01 to 3.46. According to the industry distribution chart, Avis Budget Group ranks #999999 out of 447 companies in the Business Services industry.
Is Avis Budget Group's PEG Ratio too high?
Avis Budget Group's current PEG Ratio is 0.00. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 3.46. Based on the distribution chart, Avis Budget Group ranks #999999 out of 447 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Avis Budget Group has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avis Budget Group's PEG Ratio compare to GATX and WSC?
According to the Business Services industry distribution chart, Avis Budget Group ranks #999999 out of 447 companies for PEG Ratio. This places Avis Budget Group in the lower half of its industry. The industry median PEG Ratio is 1.17. Historically, Avis Budget Group's own PEG Ratio has ranged from 0.01 to 3.46 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Business Services company?
The median PEG Ratio among Business Services companies is 1.17, based on 447 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Avis Budget Group and its competitors. For the Business Services industry, the median PEG Ratio is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avis Budget Group's current PEG Ratio is 0.00. 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 $131.03, compared to a current price of $148.51 — trading 13.3% above its estimated fair value. The current PEG Ratio is 0.00. Avis Budget Group's overall GF Score™ is 75/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Avis Budget Group (CAR), the current PEG Ratio is 0.00 as of Jun. 30, 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 $148.51 is trading 13.3% above its estimated GF Value™ of $131.03.
GuruFocus considers Avis Budget Group to be Modestly Overvalued.
Key valuation signals for CAR:
PEG Ratio: 0.00
GF Value™: $131.03 vs. price of $148.51 (13.3% above fair value)
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.
75GF Score
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