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 16.88 is considered Fairly compared with the five-year average of 21.39. The fair price of Carmax Inc (KMX) is between 37.53 to 54.66 according to relative valuation methord.
Relative Value
Fair Zone
37.53-54.66
Current Price：38.90
Fair
16.88
PE
1Y
3Y
5Y
Trailing
Forward
25.70
EV/EBITDA
Carmax Inc. (KMX) has a current EV/EBITDA of 25.70. The 5-year average EV/EBITDA is 26.89. The thresholds are as follows: Strongly Undervalued below 17.03, Undervalued between 17.03 and 21.96, Fairly Valued between 31.82 and 21.96, Overvalued between 31.82 and 36.76, and Strongly Overvalued above 36.76. The current Forward EV/EBITDA of 25.70 falls within the Historic Trend Line -Fairly Valued range.
39.47
EV/EBIT
Carmax Inc. (KMX) has a current EV/EBIT of 39.47. The 5-year average EV/EBIT is 34.89. The thresholds are as follows: Strongly Undervalued below 18.96, Undervalued between 18.96 and 26.92, Fairly Valued between 42.86 and 26.92, Overvalued between 42.86 and 50.83, and Strongly Overvalued above 50.83. The current Forward EV/EBIT of 39.47 falls within the Historic Trend Line -Fairly Valued range.
0.23
PS
Carmax Inc. (KMX) has a current PS of 0.23. 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 0.23 falls within the Undervalued range.
4.15
P/OCF
Carmax Inc. (KMX) has a current P/OCF of 4.15. The 5-year average P/OCF is 5.92. The thresholds are as follows: Strongly Undervalued below -79.69, Undervalued between -79.69 and -36.89, Fairly Valued between 48.73 and -36.89, Overvalued between 48.73 and 91.54, and Strongly Overvalued above 91.54. The current Forward P/OCF of 4.15 falls within the Historic Trend Line -Fairly Valued range.
5.73
P/FCF
Carmax Inc. (KMX) has a current P/FCF of 5.73. The 5-year average P/FCF is 51.69. The thresholds are as follows: Strongly Undervalued below -65.03, Undervalued between -65.03 and -6.67, Fairly Valued between 110.04 and -6.67, Overvalued between 110.04 and 168.40, and Strongly Overvalued above 168.40. The current Forward P/FCF of 5.73 falls within the Historic Trend Line -Fairly Valued range.
Carmax Inc (KMX) has a current Price-to-Book (P/B) ratio of 0.93. Compared to its 3-year average P/B ratio of 1.83 , the current P/B ratio is approximately -49.42% higher. Relative to its 5-year average P/B ratio of 2.59, the current P/B ratio is about -64.20% higher. Carmax Inc (KMX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.29%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -1.21% , the current FCF yield is about -100.00% lower.
0.93
P/B
Median3y
1.83
Median5y
2.59
11.96
FCF Yield
Median3y
3.29
Median5y
-1.21
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
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of KMX decreased by 52.42% 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 -23.17%to the performance.
Overall, the performance of KMX in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Carmax Inc (KMX) currently overvalued or undervalued?
What is Carmax Inc (KMX) fair value?
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 05 2025?
What is the current FCF Yield for Carmax Inc (KMX) as of Dec 05 2025?
What is the current Forward P/E ratio for Carmax Inc (KMX) as of Dec 05 2025?