Stock Price & Analysis

Based on the analysis, CVNA stock shows strong momentum and improving fundamentals, but faces macroeconomic and competitive challenges. It is recommended to hold CVNA stock as its long-term growth potential outweighs current risks.

The price prediction for CVNA stock in 2025 is $192, driven by improved financials and analyst sentiment, with caution due to debt and market conditions.

The S1 support level for CVNA Stock is $172.06 ,The R1 resistant level for CVNA Stock is $221.08.

As of the end of day on 2025-04-02, the price of CVNA Stock was $210.29.

The target price for CVNA Stock according to analyst rating is 282.86, with the highest price target at 340.00 and the lowest at 220.00. Analysts have a Moderate Buy rating on CVNA Stock overall.

The market cap of CVNA is $45.4B.

Analysis and Insights

Valuation Metrics:

Carvana's valuation appears stretched based on key metrics. The stock trades at a P/E ratio of 128.03, significantly higher than industry averages, indicating high expectations for future growth. Additionally, the EV/EBITDA ratio of 35.72 suggests a premium valuation relative to earnings.

Profitability and Growth:

While Carvana has shown revenue growth, its net income has been inconsistent. In Q4 2024, net income reached $159 million, a significant improvement, but profitability remains fragile due to high operating expenses and debt levels.

Debt and Dilution:

Carvana has been reducing its debt-to-assets ratio, but its price-to-cash-flow ratio of 147.9 indicates a hefty premium. The company has raised $924 million through equity offerings, which, while helpful for debt reduction, dilutes shareholder value.

Market Sentiment and Competition:

Despite positive analyst upgrades, challenges like high debt, macroeconomic sensitivity, and potential competition from Amazon (though limited) weigh on the stock. Analysts remain cautious, with a consensus target price of $284.29, implying 53% upside but reflecting ongoing risks.

Conclusion:

Carvana's high valuation metrics, inconsistent profitability, and debt concerns suggest the stock may be overvalued. While revenue growth and operational improvements are positive, investors should be cautious due to the stock's sensitivity to macroeconomic factors and competitive pressures.

Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. On the Company's platform, consumers can research and identify a vehicle, inspect it using its 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from their desktop or mobile devices. It also provides automated vehicle valuations for buying vehicles from customers with or without a retail purchase, automated financing, vehicle service contracts (VSC), auto insurance, GAP waiver coverage, limited warranty, and other ancillary products. It offers pick-up and delivery options, including pick-up at its vending machines or hubs, and as soon as same day deliveries, depending on the market. The Company's in-house customer advocates are available to answer customer questions that arise throughout the process.

Carvana (CVNA) stock is predicted to reach $300-$400 by 2030, driven by its strong momentum and improving financials. Analysts highlight its 88% rating from Validea's Quantitative Momentum Investor model and positive net income trends, despite challenges like high debt and macroeconomic sensitivity.

CVNA has a total of 13700 employees.