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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, CarMax Inc's enterprise value is $22,367 Mil. CarMax Inc's operating income for the trailing twelve months (TTM) ended in Aug. 2014 was $725 Mil. Therefore, CarMax Inc's EV/EBIT ratio for today is 30.84.

KMX' s 10-Year EV/EBIT Range
Min: 10.3   Max: 49.4
Current: 30.84

10.3
49.4

During the past 13 years, the highest EV/EBIT Ratio of CarMax Inc was 49.40. The lowest was 10.30. And the median was 24.60.

KMX's EV/EBITis ranked higher than
59% of the 1426 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 14.59 vs. KMX: 30.84 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CarMax Inc's enterprise value for the quarter that ended in Aug. 2014 was $19,222 Mil. CarMax Inc's Operating Income for the trailing twelve months (TTM) ended in Aug. 2014 was $725 Mil. CarMax Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Aug. 2014 was 3.77%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=22367.416/725.217
=30.84

CarMax Inc's current Enterprise Value is $22,367 Mil.
CarMax Inc's Operating Income for the trailing twelve months (TTM) ended in Aug. 2014 was 97.355 (Nov. 2013 ) + 86.687 (Feb. 2014 ) + 282.9 (May. 2014 ) + 258.275 (Aug. 2014 ) = $725 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 Aug. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Aug. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Aug. 2014 )
=725.217/19222.107
=3.77 %

CarMax Inc's Enterprise Value for the quarter that ended in Aug. 2014 was $19,222 Mil.
CarMax Inc's Operating Income for the trailing twelve months (TTM) ended in Aug. 2014 was 97.355 (Nov. 2013 ) + 86.687 (Feb. 2014 ) + 282.9 (May. 2014 ) + 258.275 (Aug. 2014 ) = $725 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


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
ev2ebit 34.8325.0430.0620.2936.3110.1822.3216.5228.3326.58

CarMax Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ev2ebit 18.0819.3423.9428.3326.3125.1726.2026.5824.3226.51
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