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}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have 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 complete your SMS verification

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 proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

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