Carsales.com’s FVE Increased to AUD 15.80 As International Investments Gain Traction

Narrow-moat Carsales.com’s fiscal 2019 result is in line with our expectations, with revenue up 11% to AUD 418 million on a like-for-like basis, versus our AUD 420 million forecast. Like-for-like underlying EBITDA growth of 7% to AUD 210 million matched our forecast. Management’s outlook statement was vague but broadly positive, with solid revenue, adjusted EBITDA, and net profit after tax expected in fiscal 2020 versus our 8% revenue growth and 13% EBITDA and NPAT growth forecasts.