Wedding car rental growth puts Avis Budget Group (CAR) in focus

A new forecast for the wedding car rental market, projecting expansion from US$2.2b in 2026 to US$5.5b by 2036, has put fresh attention on Avis Budget Group (CAR) as a key competitor.

The report highlights Avis Budget Group’s role in higher end wedding rentals, including luxury fleets, themed vehicle options, and bundled wedding packages that cater to event driven travel and premium services.

At a share price of US$118.35, Avis Budget Group has a 1-year total shareholder return of 30.41%, while its 3-year total shareholder return is a 48.28% decline and the 5-year total shareholder return is up 146.66%. This suggests that long term holders have seen strong gains even as more recent momentum has cooled.

If wedding driven demand has you thinking about where else growth stories might emerge in mobility and infrastructure, it could be a good time to scan 25 power grid technology and infrastructure stocks as another set of ideas to research.

With the shares at US$118.35, a recent 30.41% 1 year total return, a 48.28% 3 year decline, a 146.66% 5 year gain and a valuation score of 3, is Avis Budget Group quietly cheap today or already pricing in future growth?

Most Popular Narrative: 18% Undervalued

At a last close of $118.35 versus a narrative fair value of about $143.71, the most followed view sees room between price and fundamentals, and it rests heavily on how premium services reshape earnings power.

The launch of Avis First, a premium product offering, targets the structural industry shift toward premiumization seen in airlines and hotels, positioning Avis to capture higher-margin customers and raise average revenue per rental; this differentiation could lead to improved revenue growth and net margin expansion over the long term.

Curious what has to happen for that premium push to justify a higher value? The narrative leans on gradually improving revenue, a sharp swing in profitability and a future earnings multiple that stays grounded. The full story connects wedding rentals, airport concierge services and autonomous partnerships into one set of numbers.

Result: Fair Value of $143.71 (UNDERVALUED)

However, there is still a risk that alternative mobility options cap rental volumes and that competitors crowd into premium services, limiting the payoff from Avis First.

Build Your Own Avis Budget Group Narrative

If you see the numbers differently or want to stress test your own assumptions, you can pull the same data, shape your own story and Do it your way in just a few minutes.

A great starting point for your Avis Budget Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.