TacticScaleWhat Avis Budget Does & How It Makes Money (CAR)
Updated October 2026 · reflects Avis Budget's latest reported financials
Global car and truck rental company behind Avis, Budget and Zipcar. It earns money mainly by charging rental fees for its vehicle fleet under several brands, plus fees from car-sharing and ancillary products and services sold with rentals, to both business and leisure customers.
How Avis Budget makes money
It earns money mainly by charging rental fees for its vehicle fleet under several brands, plus fees from car-sharing and ancillary products and services sold with rentals, to both business and leisure customers.
What Avis Budget does
Avis Budget Group is a vehicle rental company serving business and leisure travelers as well as consumers across the Americas, Europe, the Middle East and Africa, Asia, and Australasia. Its best-known brands are Avis and Budget, alongside Budget Truck and the Zipcar car-sharing network, and it sells ancillary products and services alongside its rentals. The group also runs a portfolio of regional rental brands, including Payless, Apex, Maggiore, Morini Rent, FranceCars, AmicoBlu, Turiscar, ACL Hire and McNicoll Vehicle Hire. The company was founded in 1946 and is headquartered in Parsippany, New Jersey. It was formerly known as Cendant Corporation and took the Avis Budget Group name in September 2006.
Products & services
- Avis car rental
- Budget car rental
- Budget Truck rental
- Zipcar car sharing
- Payless car rental
- Maggiore car rental
What is Avis Budget worth?
On an owner-earnings DCF, Avis Budget's most-likely value is about $105 versus a recent price near $106 (1% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$75) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 87.4× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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