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CarMax Inc (NYSE:KMX)
EV/EBIT
20.22 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, CarMax Inc's enterprise value is $20,963 Mil. CarMax Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was $1,037 Mil. Therefore, CarMax Inc's EV/EBIT ratio for today is 20.22.

KMX' s EV/EBIT Range Over the Past 10 Years
Min: 10.1   Max: 38.1
Current: 20.25

10.1
38.1

During the past 13 years, the highest EV/EBIT Ratio of CarMax Inc was 38.10. The lowest was 10.10. And the median was 18.50.

KMX's EV/EBIT is ranked lower than
70% of the 1034 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 13.38 vs. KMX: 20.25 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CarMax Inc's enterprise value for the quarter that ended in May. 2016 was $21,122 Mil. CarMax Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was $1,037 Mil. CarMax Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2016 was 4.91%.


Definition

CarMax Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=20963.426/1037.001
=20.22

CarMax Inc's current Enterprise Value is $20,963 Mil.
CarMax Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was 287.272 (Aug. 2015 ) + 217.978 (Nov. 2015 ) + 237.97 (Feb. 2016 ) + 293.781 (May. 2016 ) = $1,037 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

CarMax Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: May. 2016 )=EBIT (TTM)/Enterprise Value (Q: May. 2016 )
=1037.001/21121.742
=4.91 %

CarMax Inc's Enterprise Value for the quarter that ended in May. 2016 was $21,122 Mil.
CarMax Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was 287.272 (Aug. 2015 ) + 217.978 (Nov. 2015 ) + 237.97 (Feb. 2016 ) + 293.781 (May. 2016 ) = $1,037 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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
ev2ebit 17.8214.3322.1110.1718.6516.5319.6821.3623.2418.74

CarMax Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
ev2ebit 19.7721.6522.2923.2423.6221.3120.9818.7420.370.00
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