The hidden value in Carsales

James Carlisle explains why the country’s leading car sales portal deserves a spot on our Buy list despite more than doubling in price.

When we first looked at Australia’s most popular portal for buying and selling cars (and boats and bikes) in the float of September 2009 (see Carsales.com’s luxurious price tag (No View – $3.50)) it was priced on a prospective price-earnings ratio of 22.

By the time of Carsales cleans up the yard (No View – $4.86) on 24 Oct 2011, that multiple was 20. Now it’s back up to 26 and the share price has risen 163% since listing. Isn’t this party already over?

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles