CarMax, Inc.

CarMax, Inc.

KMXยทNYSE

$46.03

-1.9%
Consumer CyclicalAuto - Dealerships

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

At a Glance

Live Snapshot
Market Cap$6.53B
EPS1.6800
P/E Ratio27.40
Earnings Date06/17/2026
CarMax, Inc.

CarMax, Inc. Fair Value Envelope

KMX ยท NYSE

Our analysis suggests that KMX has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $46.033, this represents a potential HIDDEN relative to our calculated worth for CarMax, Inc..

Intrinsic Value
Current Price: $46.033

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$15,235.3B
+ Cash & Equivalents$122.8M
Firm Value$15,235.5B
- Debt$2.8B
Equity Value$15,232.7B
/ Shares Outstanding152,430,485B
DCF Value$99.9K
UNDERVALUED BY 216988%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$3.6B
$7.1B
$14.3B
$28.5B
$57.1B
$114.2B
$228.3B
$456.7B
$913.3B
$1,826.7B
Maintenance CapEx
-$216.4M
-$432.8M
-$865.6M
-$1.7B
-$3.5B
-$6.9B
-$13.8B
-$27.7B
-$55.4B
-$110.8B
Owner Earnings
$3.4B
$6.7B
$13.4B
$26.8B
$53.6B
$107.2B
$214.5B
$429.0B
$857.9B
$1,715.9B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$3.1B
$5.7B
$10.6B
$19.7B
$36.5B
$67.6B
$125.1B
$231.8B
$429.2B
$794.8B
Terminal Value represents 88.7% of Enterprise Value