Auto Trader Group Plc £AUTO - A Valuation On 20th September 2021

Auto Trader has become the largest and most visited online vehicle marketplace in the UK and enjoys some truly incredible economics. Will margins and growth normalise, or will it be a bumpy ride?

Summary

Auto Trader has become the largest and most visited online vehicle marketplace in the UK. A post-lockdown recovery will spur revenue growth, and operating costs will normalise. Powerful network effects will help the company pass on price rises while strong demand for cars and restricted supply will support underlying car prices.

Market Price = £6.…