KAR Auction Services Inc
NYSE: KAR · CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS
Updated 2025-12-24
KAR Auction Services Inc (KAR) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for KAR.
Valued
Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.
KAR historical valuation range
Where current P/E sits in KAR's own 5Y range.
KAR intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
KAR valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 35.49x
P/S Ratio — History
Current: 1.73x
Is KAR overvalued in 2026?
KAR Auction Services Inc (KAR) currently trades at $30.88 per share with a market capitalization of $3,282,656,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 65/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 35.5x. The PEG ratio of 1.34 points to a price that reasonably reflects expected earnings growth.
Our discounted cash flow model estimates KAR's intrinsic value at $18.64 per share, against the current market price of $30.88. This implies a premium to fair value of -65.67%. The current price sits well above what projected cash flows justify, implying investors are paying for growth that has not yet materialized.
Financial quality is a concern. The Piotroski F-Score of 0/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.
Bottom line: KAR trades at a fair valuation on our framework, with a Smart Value Score of 65/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.
Frequently asked questions
Is KAR overvalued?
KAR scores 65/100 on our Smart Value Score (Grade B), a mixed overall profile. On valuation specifically, the DCF puts intrinsic value below the current price, so the stock is expensive on cash flow today. The score reflects growth and quality carrying it, not a cheap entry point.
What is KAR's fair value?
Our DCF model estimates KAR's intrinsic value at $18.64 per share, versus the current price of $30.88, a margin of safety of -65.67%. Fair value is the present value of the cash flows we project the business to produce, so a price above it means the market is paying up for growth the model does not yet assume.
What P/E ratio does KAR trade at?
KAR trades at a P/E of 35.5x on trailing twelve-month earnings. P/E is what you pay per dollar of profit.
Is KAR a buy based on valuation?
Our Smart Value rating for KAR is Buy, from a Smart Value Score of 65/100 that blends growth, quality, and valuation. The profile is balanced and best suited to investors who already have a thesis. This is research to inform your decision, not personalized financial advice.
How does KAR's valuation compare to its history?
There is not enough historical valuation data yet for a confident percentile read on KAR.
What is KAR's Smart Value Score?
KAR's Smart Value Score is 65/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.