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CarMax (FRA:XA4) Cyclically Adjusted PS Ratio : 0.52 (As of Apr. 28, 2024)


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What is CarMax Cyclically Adjusted PS Ratio?

As of today (2024-04-28), CarMax's current share price is €64.38. CarMax's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was €123.20. CarMax's Cyclically Adjusted PS Ratio for today is 0.52.

The historical rank and industry rank for CarMax's Cyclically Adjusted PS Ratio or its related term are showing as below:

FRA:XA4' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.45   Med: 1.16   Max: 1.71
Current: 0.5

During the past years, CarMax's highest Cyclically Adjusted PS Ratio was 1.71. The lowest was 0.45. And the median was 1.16.

FRA:XA4's Cyclically Adjusted PS Ratio is ranked better than
57.77% of 985 companies
in the Vehicles & Parts industry
Industry Median: 0.64 vs FRA:XA4: 0.50

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

CarMax's adjusted revenue per share data for the three months ended in Feb. 2024 was €32.964. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €123.20 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


CarMax Cyclically Adjusted PS Ratio Historical Data

The historical data trend for CarMax's Cyclically Adjusted PS 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 Cyclically Adjusted PS Ratio Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.12 1.39 1.02 0.55 0.57

CarMax Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 0.55 0.61 0.47 0.57

Competitive Comparison of CarMax's Cyclically Adjusted PS Ratio

For the Auto & Truck Dealerships subindustry, CarMax's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS 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's Cyclically Adjusted PS Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where CarMax's Cyclically Adjusted PS Ratio falls into.



CarMax Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

CarMax's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=64.38/123.2
=0.52

* 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 Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, CarMax's adjusted Revenue per Share data for the three months ended in Feb. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=32.964/129.4194*129.4194
=32.964

Current CPI (Feb. 2024) = 129.4194.

CarMax Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 12.208 100.373 15.741
201408 12.227 100.352 15.769
201411 12.584 99.635 16.346
201502 14.534 99.032 18.994
201505 16.978 100.333 21.900
201508 16.641 100.548 21.419
201511 16.241 100.135 20.991
201602 16.930 100.040 21.902
201605 18.682 101.355 23.855
201608 18.415 101.617 23.453
201611 17.982 101.829 22.854
201702 20.106 102.779 25.318
201705 22.000 103.256 27.575
201708 20.117 103.587 25.134
201711 19.014 104.072 23.645
201802 18.149 105.052 22.359
201805 22.598 106.148 27.552
201808 23.162 106.383 28.178
201811 21.563 106.338 26.244
201902 22.306 106.649 27.069
201905 28.617 108.048 34.277
201908 27.953 108.245 33.421
201911 26.031 108.519 31.045
202002 27.443 109.139 32.543
202005 18.105 108.175 21.661
202008 27.409 109.662 32.347
202011 26.461 109.793 31.191
202102 25.789 110.968 30.077
202105 38.096 113.576 43.410
202108 40.992 115.421 45.964
202111 45.310 117.269 50.005
202202 41.321 119.703 44.675
202205 54.443 123.323 57.134
202208 50.175 124.958 51.967
202211 40.258 125.607 41.480
202302 33.721 126.928 34.383
202305 44.602 128.314 44.986
202308 40.736 129.538 40.699
202311 35.776 129.548 35.740
202402 32.964 129.419 32.964

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

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  (FRA:XA4) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


CarMax Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of CarMax's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax (FRA:XA4) Business Description

Traded in Other Exchanges
Address
12800 Tuckahoe Creek Parkway, Richmond, VA, USA, 23238
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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