As of today (2023-10-01), CarMax's current share price is $70.73. CarMax's E10 for the quarter that ended in Aug. 2023 was $4.77. CarMax's Shiller PE Ratio for today is 14.83.
The historical rank and industry rank for CarMax's Shiller PE Ratio or its related term are showing as below:
KMX'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 12.08 Med: 30.97 Max: 52.26
Current: 14.82
During the past years, CarMax's highest Shiller PE Ratio was 52.26. The lowest was 12.08. And the median was 30.97.
KMX's Shiller PE Ratio is ranked better than 56.36% of 802
companies
in the Vehicles & Parts industry
Industry Median: 17.11
vs KMX: 14.82
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
CarMax's adjusted earnings per share data for the three months ended in Aug. 2023 was $0.750. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.77 for the trailing ten years ended in Aug. 2023.
Shiller PE for Stocks: The True Measure of Stock Valuation
CarMax Shiller PE Ratio Historical Data
The historical data trend for CarMax's Shiller PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
CarMax Annual Data
Trend
Feb14
Feb15
Feb16
Feb17
Feb18
Feb19
Feb20
Feb21
Feb22
Feb23
Shiller PE Ratio
22.33
27.02
33.74
25.33
14.87
CarMax Quarterly Data
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Shiller PE Ratio
19.16
15.05
14.87
15.19
17.12
Competitive Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CarMax Shiller PE Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where CarMax's Shiller PE Ratio falls in comparison to its industry or sector. The grey bar indicates the Shiller PE Ratio's extreme value range as defined by GuruFocus.
CarMax Shiller PE Ratio Calculation
For Shiller PE Ratio, 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 PE Ratio is also called PE10.
The Shiller PE Ratio 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's Shiller PE Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CarMax's E10 for the quarter that ended in Aug. 2023 is calculated as:
For example, CarMax's adjusted earnings per share data for the three months ended in Aug. 2023 was:
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
CarMax (NYSE:KMX) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio 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 PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio 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, Shiller PE Ratio and PS Ratio will give false valuations.
CarMax Shiller PE Ratio Related Terms
Thank you for viewing the detailed overview of CarMax's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
CarMax sells, finances, and services used and new cars through a chain of about 240 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2022. It seeks over 5% share by the end of calendar 2025. CarMax is based in Richmond, Virginia.
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