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CarMax Inc (NYSE:KMX)
Shiller P/E Ratio
31.20 (As of Today)

As of today, CarMax Inc's current share price is $55.93. CarMax Inc's E10 for the quarter that ended in Aug. 2014 was $1.79. CarMax Inc's Shiller P/E Ratio for today is 31.20.

KMX' s 10-Year Shiller P/E Ratio Range
Min: 9.88   Max: 82.33
Current: 31.2

9.88
82.33

During the past 13 years, CarMax Inc's highest Shiller P/E Ratio was 82.33. The lowest was 9.88. And the median was 30.63.

KMX's Shiller P/E Ratiois ranked higher than
77% of the 1415 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 44.45 vs. KMX: 31.20 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

CarMax Inc's adjusted earnings per share data for the three months ended in Aug. 2014 was $0.702. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $1.79 for the trailing six years ended in Aug. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

CarMax Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=55.93/1.79
=31.25

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CarMax Inc's E10 for the fiscal year that ended in Feb14 is calculated as:

For example, CarMax Inc's adjusted earnings per share data for the three months ended in Aug. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Aug. 2014*CPI of Current
=0.7/237.852*238.389
=0.702

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 238.389.

CarMax Inc Quarterly Data

201205201208201211201302201305201308201311201402201405201408
per share eps 0.5200.4800.4100.4640.6400.6200.4700.4380.7600.700
CPI 229.815230.379230.221232.166232.945233.877233.069234.781237.900237.852
Adj_EPS 0.5390.4970.4250.4760.6550.6320.4810.4450.7620.702
200911201002201005201008201011201102201105201108201111201202
per share eps 0.3300.3350.4400.4800.3600.3750.5400.4800.3600.411
CPI 216.330216.741218.178218.312218.803221.309225.964226.545226.230227.663
Adj_EPS 0.3640.3680.4810.5240.3920.4040.5700.5050.3790.430
200811200902200905200908
per share eps -0.1000.1720.1300.460
CPI 212.425212.193213.856215.834
Adj_EPS -0.1120.1930.1450.508

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CarMax Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ShillerPE 43.6631.0041.4025.7013.9725.5936.1326.2028.8031.19

CarMax Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ShillerPE 23.1424.2128.3328.8033.4832.9033.6131.1926.2729.23
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