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CarMaxMEX:KMX 63 Debt-to-EBITDA is 8.18 as of May. 2026, which is 13% below its 10-year median of 9.44. GuruFocus rates MEX:KMX with a GF Score™ of 63/100 and a GF Value™ of MXN1,349.58 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,095 Vehicles & Parts companies, CarMax ranks worse than 92.79% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for CarMax's Debt-to-EBITDA or its related term are showing as below:
MEX:KMX'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 8.54 Med: 9.44 Max: 14.21
Current: 11.72
During the past 13 years, the highest Debt-to-EBITDA Ratio of CarMax was 14.21. The lowest was 8.54. And the median was 9.44.
MEX:KMX's Debt-to-EBITDA is ranked worse than 92.79% of 1095
companies
in the Vehicles & Parts industry
Industry Median: 2.25
vs MEX:KMX: 11.72
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
CarMax Debt-to-EBITDA Related Terms
CarMax Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for CarMax's Debt-to-EBITDA 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.
MEX:KMX vs ALTB, LAD, AN: Debt-to-EBITDA Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where CarMax's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (May. 2026) EBITDA data.
CarMax (MEX:KMX) has a Debt-to-EBITDA of 8.18 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on CarMax. This is 13% below median its historical median of 9.44. Over the past decade, CarMax's Debt-to-EBITDA has ranged from 8.54 to 14.21. According to the industry distribution chart, CarMax ranks #1016 out of 1095 companies in the Vehicles & Parts industry, placing it in the top 92.8%.
Is CarMax's Debt-to-EBITDA too high?
CarMax's current Debt-to-EBITDA of 8.18 is 13% below median its 10-year median of 9.44. Over the past 10 years, this metric has ranged from a low of 8.54 to a high of 14.21. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. CarMax's value of 8.18 is 263.6% above this industry median. Based on the distribution chart, CarMax ranks #1016 out of 1095 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, CarMax has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's Debt-to-EBITDA compare to ALTB and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #1016 out of 1095 companies for Debt-to-EBITDA. This places CarMax in the lower half of its industry. The industry median Debt-to-EBITDA is 2.25. CarMax's value of 8.18 is 263.6% above this benchmark. Historically, CarMax's own Debt-to-EBITDA has ranged from 8.54 to 14.21 over the past decade. While the company's 10-year median is 9.44 vs. the industry median of 2.25, CarMax has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,095 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current Debt-to-EBITDA of 8.18 is 263.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on CarMax. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Debt-to-EBITDA is 8.18, which is 13% below median its own 10-year median of 9.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarMax stock overvalued right now?
Based on GuruFocus' analysis, CarMax (MEX:KMX) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,349.58, compared to a current price of MXN1,018.00 — trading 24.6% below its estimated fair value. The current Debt-to-EBITDA is 8.18, which is 13% below median its 10-year median of 9.44 and 263.6% above the Vehicles & Parts industry median of 2.25. CarMax's overall GF Score™ is 63/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Debt-to-EBITDA is 8.18 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CarMax (MEX:KMX) Overvalued in 2026?
Based on GuruFocus' analysis, CarMax stock appears to be undervalued.
The current stock price of MXN1,018.00 is trading 24.6% below its estimated GF Value™ of MXN1,349.58.
GuruFocus considers CarMax to be Modestly Undervalued.
Key valuation signals for MEX:KMX:
Debt-to-EBITDA: 8.18 (13% below median its 10-year median of 9.44)
GF Value™: MXN1,349.58 vs. price of MXN1,018.00 (24.6% below fair value)
Industry Position: 263.6% above the Vehicles & Parts median (#1016 of 1095)
No single metric tells the full story. See the MEX:KMX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CarMax sells, finances, and services used and new cars through a chain of over about 260 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 were 80% of fiscal 2026 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2026, the company retailed and wholesaled 780,684 and 538,203 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US, but still estimates that it had only about 3.6% US market share of vehicles zero to 10 years old in calendar 2025. CarMax is based in Richmond, Virginia.
63GF Score
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