CarMax Valuation
| KMX Stock | MXN 1,686 0.00 0.00% |
At this time, the firm appears to be undervalued. CarMax Inc shows a prevailing Real Value of 2005.11 per share. The current price of the firm is 1686.0. Our model approximates the value of CarMax Inc from analyzing the firm fundamentals such as Return On Equity of 0.11, profit margin of 0.02 %, and Current Valuation of 594.77 B as well as examining its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that CarMax's price fluctuation is very steady at this time. Calculation of the real value of CarMax Inc is based on 3 months time horizon. Increasing CarMax's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since CarMax is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CarMax Stock. However, CarMax's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1686.0 | Real 2005.11 | Hype 1686.0 | Naive 1699.78 |
The intrinsic value of CarMax's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence CarMax's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of CarMax Inc helps investors to forecast how CarMax stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of CarMax more accurately as focusing exclusively on CarMax's fundamentals will not take into account other important factors: CarMax Total Value Analysis
CarMax Inc is now anticipated to have takeover price of 594.77 B with market capitalization of 218.44 B, debt of 18.18 B, and cash on hands of 42.2 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the CarMax fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
594.77 B | 218.44 B | 18.18 B | 42.2 M |
CarMax Investor Information
About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.9. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. CarMax Inc has Price/Earnings To Growth (PEG) ratio of 0.94. The entity recorded earning per share (EPS) of 67.62. The firm had not issued any dividends in recent years. Based on the key measurements obtained from CarMax's financial statements, CarMax Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.CarMax Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CarMax has an asset utilization ratio of 121.12 percent. This suggests that the Company is making 1.21 for each dollar of assets. An increasing asset utilization means that CarMax Inc is more efficient with each dollar of assets it utilizes for everyday operations.CarMax Ownership Allocation
CarMax Inc retains a total of 158.02 Million outstanding shares. The majority of CarMax Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in CarMax Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in CarMax. Please pay attention to any change in the institutional holdings of CarMax Inc as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.CarMax Profitability Analysis
The company reported the revenue of 31.9 B. Net Income was 1.15 B with profit before overhead, payroll, taxes, and interest of 4.09 B.About CarMax Valuation
Our relative valuation model uses a comparative analysis of CarMax. We calculate exposure to CarMax's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of CarMax's related companies.CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia. CarMax operates under Auto Truck Dealerships classification in Mexico and is traded on Mexico Stock Exchange. It employs 25000 people.
8 Steps to conduct CarMax's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates CarMax's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct CarMax's valuation analysis, follow these 8 steps:- Gather financial information: Obtain CarMax's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine CarMax's revenue streams: Identify CarMax's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research CarMax's industry and market trends, including the size of the market, growth rate, and competition.
- Establish CarMax's growth potential: Evaluate CarMax's management, business model, and growth potential.
- Determine CarMax's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate CarMax's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for CarMax Stock Analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.