KAR Auction Current Valuation vs. Revenue
| KAR Stock | USD 20.60 0.01 0.05% |
For KAR Auction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KAR Auction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KAR Auction Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KAR Auction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KAR Auction Services over time as well as its relative position and ranking within its peers.
KAR |
Is Commercial Services & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KAR Auction. If investors know KAR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KAR Auction listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of KAR Auction Services is measured differently than its book value, which is the value of KAR that is recorded on the company's balance sheet. Investors also form their own opinion of KAR Auction's value that differs from its market value or its book value, called intrinsic value, which is KAR Auction's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KAR Auction's market value can be influenced by many factors that don't directly affect KAR Auction's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between KAR Auction's value and its price as these two are different measures arrived at by different means. Investors typically determine if KAR Auction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KAR Auction's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
KAR Auction Services Revenue vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KAR Auction's current stock value. Our valuation model uses many indicators to compare KAR Auction value to that of its competitors to determine the firm's financial worth. KAR Auction Services is rated fifth overall in current valuation category among its peers. It also is rated fifth overall in revenue category among its peers totaling about 0.69 of Revenue per Current Valuation. The ratio of Current Valuation to Revenue for KAR Auction Services is roughly 1.45 . Comparative valuation analysis is a catch-all technique that is used if you cannot value KAR Auction by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.KAR Current Valuation vs. Competition
KAR Auction Services is rated fifth overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is now estimated at about 114.16 Billion. KAR Auction holds roughly 2.39 Billion in current valuation claiming about 2.1% of equities under Industrials industry.
KAR Revenue vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
KAR Auction |
| = | 2.39 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
KAR Auction |
| = | 1.65 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
KAR Revenue vs Competition
KAR Auction Services is rated fifth overall in revenue category among its peers. Market size based on revenue of Industrials industry is now estimated at about 156.19 Billion. KAR Auction claims roughly 1.65 Billion in revenue contributing just under 2% to equities under Industrials industry.
KAR Auction Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KAR Auction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KAR Auction will eventually generate negative long term returns. The profitability progress is the general direction of KAR Auction's change in net profit over the period of time. It can combine multiple indicators of KAR Auction, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. KAR Auction Services, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana. Kar Auction operates under Auto Truck Dealerships classification in the United States and is traded on New York Stock Exchange. It employs 8256 people.
KAR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KAR Auction. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of KAR Auction position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the KAR Auction's important profitability drivers and their relationship over time.
Use KAR Auction in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if KAR Auction position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KAR Auction will appreciate offsetting losses from the drop in the long position's value.KAR Auction Pair Trading
KAR Auction Services Pair Trading Analysis
The ability to find closely correlated positions to KAR Auction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KAR Auction when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back KAR Auction - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling KAR Auction Services to buy it.
The correlation of KAR Auction is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as KAR Auction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KAR Auction Services moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for KAR Auction can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your KAR Auction position
In addition to having KAR Auction in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Millennials Best Thematic Idea Now
Millennials Best
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Millennials Best Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for KAR Stock Analysis
When running KAR Auction's price analysis, check to measure KAR Auction's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.