Published on 8 May 2021 on Simply Wall St. via Yahoo Finance

carsales.com (ASX:CAR) Has Compensated Shareholders With A Respectable 81% Return On Their...

Stock pickers are generally looking for stocks that will outperform the broader market. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, the carsales.com Ltd (ASX:CAR) share price is up 55% in the last 5 years, clearly besting the market return of around 33% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 41% , including dividends .

See our latest analysis for carsales.com

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.