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CarMax Inc (NYSE:KMX)
Enterprise Value
$20,993 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, CarMax Inc's enterprise value is $20,993 Mil. CarMax Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2016 was $1,046 Mil. Therefore, CarMax Inc's EV/EBIT ratio for today is 20.06.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CarMax Inc's enterprise value is $20,993 Mil. CarMax Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2016 was $1,184 Mil. Therefore, CarMax Inc's EV/EBITDA ratio for today is 17.74.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, CarMax Inc's enterprise value is $20,993 Mil. CarMax Inc's revenue for the trailing twelve months (TTM) ended in Feb. 2016 was $15,150 Mil. Therefore, CarMax Inc's EV/Revenue ratio for today is 1.39.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

CarMax Inc's Enterprise Value for the fiscal year that ended in Feb. 2016 is calculated as

Enterprise Value (A: Feb. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt
=9007.2846+0+10342.323
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+301.178+0-37.394
=19,613

CarMax Inc's Enterprise Value for the quarter that ended in Feb. 2016 is calculated as

Enterprise Value (Q: Feb. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt
=9007.2846+0+10342.323
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+301.178+0-37.394
=19,613

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


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

CarMax Inc's EV/EBIT for today is

CarMax Inc's current Enterprise Value is $20,993 Mil.
CarMax Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2016 was 303.082 (May. 2015 ) + 287.272 (Aug. 2015 ) + 217.978 (Nov. 2015 ) + 237.97 (Feb. 2016 ) = $1,046 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

CarMax Inc's EV/EBITDA for today is:

CarMax Inc's current Enterprise Value is $20,993 Mil.
CarMax Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2016 was 335.148 (May. 2015 ) + 320.394 (Aug. 2015 ) + 253.294 (Nov. 2015 ) + 274.826 (Feb. 2016 ) = $1,184 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

CarMax Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=20993.417/15149.675
=1.39

CarMax Inc's current Enterprise Value is $20,993 Mil.
CarMax Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2016 was 4014.888 (May. 2015 ) + 3884.913 (Aug. 2015 ) + 3544.069 (Nov. 2015 ) + 3705.805 (Feb. 2016 ) = $15,150 Mil.

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


Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Cash and Cash Equivalents


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

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev 5,8594,3292,2764,63611,99211,56614,42117,67323,07719,613

CarMax Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
ev 17,86717,67317,09319,22220,62323,07723,93722,21321,87919,613
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