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Auto Trader’s market dominance drives cash flow

The online car retailing platform can easily increase prices without losing customers
June 1, 2023
  • Impressive free cash flow yield
  • Strong operating margin

Having a near monopoly of a market is a good place for a business to be. Last year, 75 per cent of time spent on automotive classified sites was on Auto Trader (AUTO). This dominance allows the company to raises prices without much complaint and keep generating cash for its shareholders.

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