OPENLANE, Inc. logo KAR - OPENLANE, Inc.

Inactive Ticker KAR is not actively trading. Quotes and analytics may be stale.
Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 9
HOLD 9
SELL 0
STRONG
SELL
0
| PRICE TARGET: $29.00 DETAILS
HIGH: $32.00
LOW: $26.00
MEDIAN: $29.00
CONSENSUS: $29.00
UPSIDE: 5.69%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 42.1% below fair value
Current Price $27.44
Bear Case $32.63 18.9% upside ($32.63 - $27.44) / $27.44 = 18.9% 6% stage 1 growth, 11% discount
Fair Value $47.42 72.8% upside ($47.42 - $27.44) / $27.44 = 72.8% 10% stage 1 growth, 11% discount
Bull Case $61.91 125.6% upside ($61.91 - $27.44) / $27.44 = 125.6% 13% stage 1 growth, 11% discount

Adjust Assumptions

9.9%
11.0%
3.0%

Key Value Driver

FCF growth rate (10% base case)

Terminal Value % of EV 39%
Implied Market Multiple 12.9x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $29.00 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $47.42 per share.

Warnings

Wall Street's average price target is $29.00 (from 18 analysts). Our estimate is 85% above the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions