CarMax Valuation
| KMX Stock | USD 45.17 0.39 0.87% |
At this time, the firm appears to be overvalued. CarMax Inc shows a prevailing Real Value of $42.51 per share. The current price of the firm is $45.17. Our model approximates the value of CarMax Inc from analyzing the firm fundamentals such as Current Valuation of 24.1 B, return on equity of 0.0746, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting CarMax's valuation include:
Price Book 1.0414 | Enterprise Value | Enterprise Value Ebitda 13.1127 | Price Sales 0.2362 | Forward PE 16.835 |
Overvalued
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 45.17 | Real 42.51 | Target 39.0 | Hype 45.17 | Naive 39.33 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use CarMax's intrinsic value based on its ongoing forecasts of CarMax's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against CarMax's closest peers.
CarMax Cash |
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CarMax Revenue by Product
CarMax Total Value Analysis
CarMax Inc is now expected to have company total value of 24.1 B with market capitalization of 6.58 B, debt of 19.43 B, and cash on hands of 246.96 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the CarMax fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
24.1 B | 6.58 B | 19.43 B | 246.96 M |
CarMax Investor Information
About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.04. 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 0.69. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 27th of March 2007. Based on the key measurements obtained from CarMax's financial statements, CarMax Inc may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0272 | 0.0268 |
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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 102.93 percent. This suggests that the Company is making $1.03 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 Profitability Analysis
Based on the key profitability measurements obtained from CarMax's financial statements, CarMax Inc is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in March. Profitability indicators assess CarMax's ability to earn profits and add value for shareholders.Net Income | First Reported 1997-05-31 | Previous Quarter 95.4 M | Current Value 62.2 M | Quarterly Volatility 85.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.1 | 0.1078 |
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| Net Profit Margin | 0.0186 | 0.017 |
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| Operating Profit Margin | 0.0272 | 0.0268 |
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| Pretax Profit Margin | 0.0282 | 0.0227 |
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| Return On Assets | 0.0167 | 0.0176 |
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| Return On Equity | 0.1 | 0.0789 |
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For CarMax profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CarMax Inc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CarMax utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CarMax's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CarMax over time as well as its relative position and ranking within its peers.
CarMax Earnings per Share Projection vs Actual
By analyzing CarMax's earnings estimates, investors can diagnose different trends across CarMax's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for CarMax Inc is based on EPS before non-recurring items and includes expenses related to employee stock options.CarMax Ownership Allocation
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. Please note that on November 14, 2025, Representative Ro Khanna of US Congress acquired under $15k worth of CarMax Inc's common stock.CarMax Profitability Analysis
The company reported the last year's revenue of 28.21 B. Total Income to common stockholders was 500.56 M with profit before taxes, overhead, and interest of 3.45 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3 B | 1.8 B | |
| Pretax Profit Margin | 0.02 | 0.03 | |
| Operating Profit Margin | 0.03 | 0.03 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.11 | 0.10 |
CarMax Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 156.1 M | |
| Quarterly Earnings Growth Y O Y | -0.472 | |
| Forward Price Earnings | 16.835 |
CarMax Current Valuation Indicators
Valuation refers to the process of determining the present value of CarMax Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CarMax we look at many different elements of the entity such as CarMax's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as CarMax, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use CarMax's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes CarMax's worth.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.