CAR Group Ltd
CAR: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$15.00 | Vsndhl | Fkdhxfqnc |
Carsales.com’s AUD 15.80 Fair Value Estimate Maintained Following Accounting Standard Change
We have updated our financial model for narrow-moat-rated Carsales.com to reflect the introduction of the new accounting standard relating to operating leases, known as AASB 16. The new accounting standard aligns the treatment of finance and operating leases and effectively assumes the lessee has financed the purchase of the leased asset with debt. This results in the replacement of rental expenses with additional depreciation and interest expenses.