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    Is Avis Budget Group (CAR) Cheap As Its Premium Rental Push Expands?

    Simply Wall St·10/26/2026 04:41:55
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    Avis Budget Group (CAR) has been drawing attention after a stretch of weak share performance, with the stock down over the past month and past 3 months. Investors are reassessing what the recent returns imply for their expectations going forward.

    At a share price of $101.34, Avis Budget Group has seen momentum fade, with the 30 day share price return down 6.4% and the 90 day share price return down 38.1%, while the 1 year total shareholder return has declined 35.5%. This points to a sustained reset in sentiment rather than just a short term pullback.

    Broaden your watchlist beyond Avis Budget Group by scanning a hand picked 29 high quality undervalued stocks.

    Avis Budget Group still runs a broad rental and car sharing platform across several continents. After such a sharp share price reset, the real issue is whether that global footprint is now being offered at a fair valuation.

    Most Popular Narrative: 18% Undervalued

    Avis Budget Group is framed as undervalued in the most followed narrative, with a fair value of $122.86 compared with the last close at $101.34. That gap is linked directly to how effectively the business can turn its fleet and premium offerings into sustained earnings.

    The launch and rapid scaling of Avis First, a premium rental offering, is now backed by an expanded footprint of 36 locations, very high customer ratings and RPD above US$100. This supports the idea that a richer mix of high value rentals could lift revenue and net margins over time.

    See why 10 investors see Avis Budget Group as 18% undervalued.

    Result: Fair Value of $122.86 (UNDERVALUED)

    Still, recall related costs and high corporate leverage could quickly weaken the Avis Budget Group story if utilization or cash generation comes under pressure.

    Find out about the key risks to this Avis Budget Group narrative.

    Next Steps

    Sentiment around Avis Budget Group is clearly mixed, with both pressure points and bright spots in view. Move quickly, review the underlying numbers, and weigh both sides of the story through the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Avis Budget Group?

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