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

As of today, CarMax Inc's current share price is $57.99. CarMax Inc's E10 for the quarter that ended in Aug. 2016 was $1.87. CarMax Inc's Shiller P/E Ratio for today is 31.01.

KMX' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 13.04   Max: 68.5
Current: 31.03

13.04
68.5

During the past 13 years, CarMax Inc's highest Shiller P/E Ratio was 68.50. The lowest was 13.04. And the median was 35.34.

KMX's Shiller P/E Ratio is ranked lower than
55% of the 214 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 27.79 vs. KMX: 31.03 )

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. 2016 was $0.840. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.87 for the trailing ten years ended in Aug. 2016.


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
=57.99/1.87
=31.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

CarMax Inc's E10 for the fiscal year that ended in Feb16 is calculated as:

For example, CarMax Inc's adjusted earnings per share data for the three months ended in Aug. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Aug. 2016 (Change)*Current CPI (Aug. 2016)
=0.84/240.849*240.849
=0.840

Current CPI (Aug. 2016) = 240.849.

CarMax Inc Quarterly Data

201405201408201411201502201505201508201511201602201605201608
per share eps 0.7600.7000.6000.6700.8600.8200.6300.7100.9000.840
CPI 237.900237.852236.151234.722237.805238.316237.336237.111240.229240.849
Adj_EPS 0.7690.7090.6120.6870.8710.8290.6390.7210.9020.840
201111201202201205201208201211201302201305201308201311201402
per share eps 0.3600.4100.5200.4800.4100.4600.6400.6200.4700.430
CPI 226.230227.663229.815230.379230.221232.166232.945233.877233.069234.781
Adj_EPS 0.3830.4340.5450.5020.4290.4770.6620.6380.4860.441
200905200908200911201002201005201008201011201102201105201108
per share eps 0.1300.4600.3300.3400.4400.4800.3600.3700.5400.480
CPI 213.856215.834216.330216.741218.178218.312218.803221.309225.964226.545
Adj_EPS 0.1460.5130.3670.3780.4860.5300.3960.4030.5760.510
200611200702200705200708200711200802200805200808200811200902
per share eps 0.2100.1900.3000.2900.1400.1000.1300.060-0.1000.170
CPI 201.500203.499207.949207.917210.177211.693216.632219.086212.425212.193
Adj_EPS 0.2510.2250.3470.3360.1600.1140.1450.066-0.1130.193

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

CarMax Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ShillerPE 0.0038.2718.1330.8343.4931.9034.5938.1845.3326.89

CarMax Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
ShillerPE 33.1737.7439.6345.3345.5537.2934.3226.8929.8731.55
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