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CarMax Inc (NYSE:KMX)
EV/EBITDA
19.04 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CarMax Inc's enterprise value is $22,473 Mil. CarMax Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Aug. 2016 was $1,181 Mil. Therefore, CarMax Inc's EV/EBITDA ratio for today is 19.04.

KMX' s EV/EBITDA Range Over the Past 10 Years
Min: 9   Max: 24.5
Current: 19.04

9
24.5

During the past 13 years, the highest EV/EBITDA Ratio of CarMax Inc was 24.50. The lowest was 9.00. And the median was 16.20.

KMX's EV/EBITDA is ranked lower than
78% of the 1089 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 9.44 vs. KMX: 19.04 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, CarMax Inc's stock price is $60.50. CarMax Inc's earnings per share for the trailing twelve months (TTM) ended in Aug. 2016 was $3.08. Therefore, CarMax Inc's P/E Ratio for today is 19.64.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=22473.076/1180.554
=19.04

CarMax Inc's current Enterprise Value is $22,473 Mil.
CarMax Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2016 was 253.294 (Nov. 2015 ) + 274.826 (Feb. 2016 ) + 334.582 (May. 2016 ) + 317.852 (Aug. 2016 ) = $1,181 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=60.50/3.08
=19.64

CarMax Inc's share price for today is $60.50.
CarMax Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Aug. 2016 was 0.63 (Nov. 2015 ) + 0.71 (Feb. 2016 ) + 0.9 (May. 2016 ) + 0.84 (Aug. 2016 ) = $3.08.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 16.1312.4214.439.0116.6714.7817.4119.0220.8316.56

CarMax Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
ev2ebitda 17.6319.3019.8720.8321.1219.0318.6516.5617.8519.00
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