$46.03
-1.9%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.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
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 |
Snapshot
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Value Model
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Statements
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Earnings Call
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Dividends
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Analyst Expectations
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