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Avis Budget Group PE Ratio

: 66.13 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-25), Avis Budget Group's share price is $167.97. Avis Budget Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $2.54. Therefore, Avis Budget Group's PE Ratio for today is 66.13.


The historical rank and industry rank for Avis Budget Group's PE Ratio or its related term are showing as below:

NAS:CAR' s PE Ratio Range Over the Past 10 Years
Min: 3.47   Med: 16.08   Max: 671.29
Current: 66.13

3.47
671.29

During the past 13 years, the highest PE Ratio of Avis Budget Group was 671.29. The lowest was 3.47. And the median was 16.08.


NAS:CAR's PE Ratio is ranked higher than
97% of the 171 Companies
in the Business Services industry.

( Industry Median: 22.10 vs. NAS:CAR: 66.13 )

Avis Budget Group's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $5.63. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $2.54.

As of today (2021-10-25), Avis Budget Group's share price is $167.97. Avis Budget Group's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $2.54. Therefore, Avis Budget Group's PE Ratio without NRI for today is 66.13.

During the past 13 years, Avis Budget Group's highest PE Ratio without NRI was 671.29. The lowest was 3.47. And the median was 16.08.

Avis Budget Group's EPS without NRI for the three months ended in Jun. 2021 was $5.63. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $2.54.

During the past 13 years, Avis Budget Group's highest 3-Year average EPS without NRI Growth Rate was 126.80% per year. The lowest was -379.70% per year. And the median was 22.90% per year.

Avis Budget Group's EPS (Basic) for the three months ended in Jun. 2021 was $5.69. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $2.61.


Avis Budget Group PE Ratio Historical Data

The historical data trend for Avis Budget Group's 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.

* Premium members only.

Avis Budget Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.96 10.32 10.91 8.10 At Loss

Avis Budget Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only At Loss At Loss At Loss At Loss 30.67

Competitive Comparison

For the Rental & Leasing Services subindustry, Avis Budget Group's PE Ratio, along with its competitors' market caps and 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 PE Ratio Distribution

For the Business Services industry and Industrials sector, Avis Budget Group's PE Ratio distribution charts can be found below:

* The bar in red indicates where Avis Budget Group's PE Ratio falls into.



Avis Budget Group PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Avis Budget Group's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=167.97/2.540
=66.13

Avis Budget Group's Share Price of today is $167.97.
Avis Budget Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.54.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Avis Budget Group  (NAS:CAR) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items 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 PE Ratio Related Terms

Thank you for viewing the detailed overview of Avis Budget Group's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Avis Budget Group Business Description

Avis Budget Group logo
Industry
Industrials » Business Services NAICS : 532111 SIC : 7514
Traded in Other Exchanges
Address
6 Sylvan Way, Parsippany, NJ, USA, 07054
Avis Budget Group Inc is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The company operates its own network of rental locations and licenses its brands to franchisees. Zipcar is a car-sharing service that allows members to use the company-owned Zipcar fleet at an hourly rate. The company's largest region by revenue is the Americas.
Executives
Ferraro Joseph A. officer: President and CEO 6 SYLVAN WAY PARSIPPANY NJ 07054
Martins Izilda P officer: EVP, Americas 6 SYLVAN WAY PARSIPPANY NJ 07054
Sarma Karthik R. director, 10 percent owner ONE BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Srs Investment Management, Llc director, 10 percent owner 1 BRYANT PARK 39TH FLOOR NEW YORK NY 10036
Hees Bernardo director, officer: Executive Chairman C/O THE KRAFT HEINZ COMPANY ONE PPG PLACE, SUITE 3200 PITTSBURGH PA 15222
Choi Brian J officer: EVP & Chief Financial Officer C/O SRS INVESTMENT MANAGEMENT, LLC ONE BRYANT PARK, 39TH FLOOR NEW YORK NY 10036
Rankin Patrick K officer: President, International 6 SYLVAN WAY PARSIPPANY NJ 07054
Lurie Glenn director C/O SYNCHRONOSS TECHNOLOGIES, INC. 200 CROSSING BLVD. BRIDGEWATER NJ 08807
Sparks Carl director 4315 NORTHAVEN ROAD DALLAS TX 75229
Krominga Lynn director 6 SYLVAN WAY PARSIPPANY NJ 07054
North John F officer: EVP & Chief Financial Officer 150 N. BARTLETT STREET MEDFORD OR 97501
Sera Jean M officer: SVP, GC & Corp. Sec. AVIS BUDGET GROUP 6 SYLVAN WAY PARSIPPANY NJ 07054
Fox Jeffrey H director ONE ALLIED DRIVE LITTLE ROCK AR 72202
Salerno F Robert director AVIS RENT A CAR INC 900 OLD COUNTRY RD GARDEN CITY NY 11530
Degenova Cathleen officer: Chief Accounting Officer 6 SYLVAN WAY PARSIPPANY NJ 07054

Avis Budget Group Headlines

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