KMX Valuation

Carmax Inc

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56.220

+0.12(0.214%)1D

Overview
Forecast
Valuation
Earnings

KMX Relative Valuation

KMX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KMX is overvalued; if below, it's undervalued.

Historical Valuation

Carmax Inc (KMX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.03 is considered Undervalued compared with the five-year average of 21.43. The fair price of Carmax Inc (KMX) is between 68.20 to 97.71 according to relative valuation methord. Compared to the current price of 56.10 USD , Carmax Inc is Undervalued By 17.75%.

Relative Value

Fair Zone

68.20-97.71

Current Price：56.10

17.75%

Undervalued

13.99

Trailing

Forward

23.06

EV/EBITDA

Carmax Inc. (KMX) has a current EV/EBITDA of 23.06. The 5-year average EV/EBITDA is 26.54. The thresholds are as follows: Strongly Undervalued below 16.03, Undervalued between 16.03 and 21.29, Fairly Valued between 31.80 and 21.29, Overvalued between 31.80 and 37.05, and Strongly Overvalued above 37.05. The current Forward EV/EBITDA of 23.06 falls within the Historic Trend Line -Fairly Valued range.

30.03

EV/EBIT

Carmax Inc. (KMX) has a current EV/EBIT of 30.03. The 5-year average EV/EBIT is 34.02. The thresholds are as follows: Strongly Undervalued below 17.22, Undervalued between 17.22 and 25.62, Fairly Valued between 42.41 and 25.62, Overvalued between 42.41 and 50.81, and Strongly Overvalued above 50.81. The current Forward EV/EBIT of 30.03 falls within the Historic Trend Line -Fairly Valued range.

0.31

Carmax Inc. (KMX) has a current PS of 0.31. The 5-year average PS is 0.52. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 0.37, Fairly Valued between 0.67 and 0.37, Overvalued between 0.67 and 0.82, and Strongly Overvalued above 0.82. The current Forward PS of 0.31 falls within the Undervalued range.

9.44

P/OCF

Carmax Inc. (KMX) has a current P/OCF of 9.44. The 5-year average P/OCF is 10.96. The thresholds are as follows: Strongly Undervalued below -83.67, Undervalued between -83.67 and -36.35, Fairly Valued between 58.28 and -36.35, Overvalued between 58.28 and 105.59, and Strongly Overvalued above 105.59. The current Forward P/OCF of 9.44 falls within the Historic Trend Line -Fairly Valued range.

12.35

P/FCF

Carmax Inc. (KMX) has a current P/FCF of 12.35. The 5-year average P/FCF is 52.84. The thresholds are as follows: Strongly Undervalued below -62.47, Undervalued between -62.47 and -4.81, Fairly Valued between 110.50 and -4.81, Overvalued between 110.50 and 168.16, and Strongly Overvalued above 168.16. The current Forward P/FCF of 12.35 falls within the Historic Trend Line -Fairly Valued range.

Carmax Inc (KMX) has a current Price-to-Book (P/B) ratio of 1.35. Compared to its 3-year average P/B ratio of 1.95 , the current P/B ratio is approximately -31.06% higher. Relative to its 5-year average P/B ratio of 2.79, the current P/B ratio is about -51.70% higher. Carmax Inc (KMX) has a Forward Free Cash Flow (FCF) yield of approximately 6.59%. Compared to its 3-year average FCF yield of 1.09%, the current FCF yield is approximately 507.56% lower. Relative to its 5-year average FCF yield of -1.62% , the current FCF yield is about -505.93% lower.

1.34

P/B

Median3y

1.95

Median5y

2.79

6.42

FCF Yield

Median3y

1.09

Median5y

-1.62

Competitors Valuation Multiple

The average P/S ratio for KMX's competitors is 0.47, providing a benchmark for relative valuation. Carmax Inc Corp (KMX) exhibits a P/S ratio of 0.31, which is -34.66% above the industry average. Given its robust revenue growth of 6.09%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bath & Body Works Inc

0.81

2.89%

6.16B

Performance Decomposition

Market capitalization of KMX decreased by 33.51% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.14 to 2.79.

The secondary factor is the Revenue Growth, contributed 6.09%to the performance.

Overall, the performance of KMX in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.09%

7.11B → 7.55B

Revenue Growth

30.37%

2.14 → 2.79

Margin Expansion

-69.97%

51.77 → 15.55

P/E Change

-33.51%