KMX PE Ratio & Valuation,Is KMX Overvalued

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 Fair zone, suggesting that its current forward PE ratio of 18.49 is considered Fairly compared with the five-year average of 21.41. The fair price of Carmax Inc (KMX) is between 36.70 to 53.13 according to relative valuation methord.

Relative Value

Fair Zone

36.70-53.13

Current Price：41.07

Fair

18.47

26.03

EV/EBITDA

Carmax Inc. (KMX) has a current EV/EBITDA of 26.03. The 5-year average EV/EBITDA is 26.93. The thresholds are as follows: Strongly Undervalued below 17.12, Undervalued between 17.12 and 22.02, Fairly Valued between 31.83 and 22.02, Overvalued between 31.83 and 36.73, and Strongly Overvalued above 36.73. The current Forward EV/EBITDA of 26.03 falls within the Historic Trend Line -Fairly Valued range.

41.70

EV/EBIT

Carmax Inc. (KMX) has a current EV/EBIT of 41.70. The 5-year average EV/EBIT is 35.03. The thresholds are as follows: Strongly Undervalued below 19.11, Undervalued between 19.11 and 27.07, Fairly Valued between 42.98 and 27.07, Overvalued between 42.98 and 50.94, and Strongly Overvalued above 50.94. The current Forward EV/EBIT of 41.70 falls within the Historic Trend Line -Fairly Valued range.

0.24

Carmax Inc. (KMX) has a current PS of 0.24. The 5-year average PS is 0.49. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 0.34, Fairly Valued between 0.64 and 0.34, Overvalued between 0.64 and 0.79, and Strongly Overvalued above 0.79. The current Forward PS of 0.24 falls within the Undervalued range.

4.24

P/OCF

Carmax Inc. (KMX) has a current P/OCF of 4.24. The 5-year average P/OCF is 5.77. The thresholds are as follows: Strongly Undervalued below -79.76, Undervalued between -79.76 and -37.00, Fairly Valued between 48.53 and -37.00, Overvalued between 48.53 and 91.30, and Strongly Overvalued above 91.30. The current Forward P/OCF of 4.24 falls within the Historic Trend Line -Fairly Valued range.

6.02

P/FCF

Carmax Inc. (KMX) has a current P/FCF of 6.02. The 5-year average P/FCF is 51.51. The thresholds are as follows: Strongly Undervalued below -65.38, Undervalued between -65.38 and -6.93, Fairly Valued between 109.96 and -6.93, Overvalued between 109.96 and 168.41, and Strongly Overvalued above 168.41. The current Forward P/FCF of 6.02 falls within the Historic Trend Line -Fairly Valued range.

Carmax Inc (KMX) has a current Price-to-Book (P/B) ratio of 0.98. Compared to its 3-year average P/B ratio of 1.82 , the current P/B ratio is approximately -46.41% higher. Relative to its 5-year average P/B ratio of 2.57, the current P/B ratio is about -62.01% higher. Carmax Inc (KMX) has a Forward Free Cash Flow (FCF) yield of approximately 11.38%. Compared to its 3-year average FCF yield of 3.31%, the current FCF yield is approximately 243.29% lower. Relative to its 5-year average FCF yield of -1.16% , the current FCF yield is about -1078.04% lower.

0.97

P/B

Median3y

1.82

Median5y

2.57

11.38

FCF Yield

Median3y

3.31

Median5y

-1.16

Competitors Valuation Multiple

The average P/S ratio for KMX's competitors is , providing a benchmark for relative valuation. Carmax Inc Corp (KMX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -5.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KMX decreased by 49.95% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 7.01B to 6.59B.

The secondary factor is the P/E Change, contributed -20.70%to the performance.

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

-5.97%

7.01B → 6.59B

Revenue Growth

-23.28%

1.89 → 1.45

Margin Expansion

-20.70%

15.18 → 12.04

P/E Change

-49.95%

81.76 → 40.92

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Carmax Inc (KMX) currently overvalued or undervalued?

What is Carmax Inc (KMX) fair value?

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. The fair price of Carmax Inc (KMX) is between 36.70 to 53.13 according to relative valuation methord.

How does KMX's valuation metrics compare to the industry average?

What is the current P/B ratio for Carmax Inc (KMX) as of Dec 16 2025?

As of Dec 16 2025, Carmax Inc (KMX) has a P/B ratio of 0.98. This indicates that the market values KMX at 0.98 times its book value.

What is the current FCF Yield for Carmax Inc (KMX) as of Dec 16 2025?

As of Dec 16 2025, Carmax Inc (KMX) has a FCF Yield of 11.38%. This means that for every dollar of Carmax Inc’s market capitalization, the company generates 11.38 cents in free cash flow.

What is the current Forward P/E ratio for Carmax Inc (KMX) as of Dec 16 2025?

As of Dec 16 2025, Carmax Inc (KMX) has a Forward P/E ratio of 18.49. This means the market is willing to pay $18.49 for every dollar of Carmax Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Carmax Inc (KMX) as of Dec 16 2025?

As of Dec 16 2025, Carmax Inc (KMX) has a Forward P/S ratio of 0.24. This means the market is valuing KMX at $0.24 for every dollar of expected revenue over the next 12 months.

KMX Valuation