Avis Budget Group’s shares have soared over the past 24 months

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Avis Budget Stock Fair Value – Avis Budget ($NASDAQ:CAR) Group is a leading car rental company with a strong presence in the United States, Europe, and Australia. The company’s shares have surged over the past 24 months, outperforming the market. This can be attributed to several reasons, such as the company’s status as a “meme” or short-squeeze stock, as well as the post-COVID landscape, which has been very favorable for the company’s business. With a surge in travel demand, rental rates have increased, and rental car companies are able to capitalize on this by owning used cars, which have become more valuable as new car production has slowed down. Avis Budget Group is well-positioned to benefit from the current trends in the travel industry. The company has a strong brand and a large customer base.

Additionally, its size and scale allow it to compete effectively with larger players in the industry. As travel demand continues to rebound, Avis Budget Group is positioned to capitalize on the trend and deliver strong returns to shareholders.

Stock Price

On Friday, AVIS BUDGET stock opened at $183.8 and closed at $166.9, a drop of 8.0% from its last closing price of 181.4. Despite the recent dip, the stock is still up significantly from where it was trading just a few years ago. The company has been in the news lately for its acquisition of Zipcar, a move that will help it expand its reach into the car-sharing market.

While some analysts see this as a positive step for the company, others are concerned that it could be a risky bet. Only time will tell how this plays out for Avis Budget Group, but for now, investors remain optimistic about the company’s prospects.

VI Analysis – Avis Budget Stock Fair Value

The VI app makes it easy to analyze a company’s fundamentals and assess its long-term potential. Based on this analysis, the intrinsic value of AVIS BUDGET shares is around $129.2. However, the stock is currently trading at $166.9, which represents a 29% overvaluation.

Summary

The company’s strong performance has been driven by solid growth in its core car rental business, as well as its ancillary businesses such as car share and fleet management. Avis Budget has also benefited from favorable industry trends, such as the continued growth of the sharing economy and the shift away from ownership towards experiences. Despite the company’s strong recent performance, its shares have come under pressure recently after a couple of negative media reports.

First, Avis Budget was accused of overcharging customers for fuel, an allegation that is currently being investigated by the New York Attorney General. Second, a report surfaced that the company is being investigated by the Securities and Exchange Commission for its accounting practices. Despite these challenges, Avis Budget remains a well-positioned company in a favorable industry. For investors willing to stomach some volatility, the stock could be a great long-term play.