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CarMax E10

: $4.00 (As of Aug. 2021)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E 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. 2021 was $1.720. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.00 for the trailing ten years ended in Aug. 2021.

As of today (2021-12-07), CarMax's current stock price is $150.55. CarMax's E10 for the quarter that ended in Aug. 2021 was $4.00. CarMax's Shiller PE Ratio of today is 37.64.

During the past 13 years, the highest Shiller PE Ratio of CarMax was 50.49. The lowest was 13.71. And the median was 32.00.


CarMax E10 Historical Data

The historical data trend for CarMax's E10 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 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.99 2.30 2.78 3.23 3.54

CarMax Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
E10 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 Premium Member Only Premium Member Only Premium Member Only 3.32 3.42 3.54 3.82 4.00

Competitive Comparison

For the Auto & Truck Dealerships subindustry, CarMax's E10, along with its competitors' market caps and E10 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 E10 Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's E10 distribution charts can be found below:

* The bar in red indicates where CarMax's E10 falls into.



CarMax E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get 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.

For example, CarMax's adjusted earnings per share data for the three months ended in Aug. 2021 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Aug. 2021 (Change)*Current CPI (Aug. 2021)
=1.72/115.4208*115.4208
=1.720

Current CPI (Aug. 2021) = 115.4208.

CarMax Quarterly Data

per share eps CPI Adj_EPS
201111 0.360 95.449 0.435
201202 0.410 96.053 0.493
201205 0.520 96.961 0.619
201208 0.480 97.199 0.570
201211 0.410 97.133 0.487
201302 0.460 97.953 0.542
201305 0.640 98.282 0.752
201308 0.620 98.675 0.725
201311 0.470 98.334 0.552
201402 0.440 99.057 0.513
201405 0.760 100.373 0.874
201408 0.700 100.352 0.805
201411 0.600 99.635 0.695
201502 0.670 99.032 0.781
201505 0.860 100.333 0.989
201508 0.820 100.548 0.941
201511 0.630 100.135 0.726
201602 0.710 100.040 0.819
201605 0.900 101.355 1.025
201608 0.840 101.617 0.954
201611 0.720 101.829 0.816
201702 0.810 102.779 0.910
201705 1.130 103.256 1.263
201708 0.980 103.587 1.092
201711 0.810 104.072 0.898
201802 0.670 105.052 0.736
201805 1.330 106.148 1.446
201808 1.240 106.383 1.345
201811 1.090 106.338 1.183
201902 1.130 106.649 1.223
201905 1.590 108.048 1.698
201908 1.400 108.245 1.493
201911 1.040 108.519 1.106
202002 1.300 109.139 1.375
202005 0.030 108.175 0.032
202008 1.790 109.662 1.884
202011 1.420 109.793 1.493
202102 1.270 110.968 1.321
202105 2.630 113.576 2.673
202108 1.720 115.421 1.720

Add all the adjusted EPS together and divide 10 will get our e10.


CarMax  (NYSE:KMX) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, 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 P/E is also called PE10.

The Shiller P/E 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 P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=150.55/4
=37.64

* 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.

During the past 13 years, the highest Shiller P/E Ratio of CarMax was 50.49. The lowest was 13.71. And the median was 32.00.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


CarMax E10 Related Terms

Thank you for viewing the detailed overview of CarMax's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

CarMax logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 423110 SIC : 5521
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 220 used retail stores at the end of fiscal 2021 plus one new vehicle store. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales account for about 83% of revenue, wholesale about 14%, and the remaining portion is composed of extended service plans and repair. In fiscal 2021, the company retailed and wholesaled 751,862 and 426,268 used vehicles, respectively. CarMax is the largest used vehicle retailer in the U.S., but still estimates that it has only about 3.5% U.S. market share of vehicles 0 to 10 years old but seeks over 5% by the end of calendar 2025. CarMax is based in Richmond, Virginia.
Executives
Oneil Mark F director C/O CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Reedy Thomas W Jr officer: EVP of Finance 12800 TUCKHOE CREEK PARKWAY RICHMOND VA 23238
Margolin Eric M officer: EVP, Gen. Counsel & Secretary C/O ADVANCE AUTO PARTS 5673 AIRPORT RD ROANOKE VA 24012
Lyski James officer: EVP & Chief Marketing Officer ONE NATIONWIDE PLAZA 1-38-06 COLUMBUS OH 43215
Nash William D officer: President & CEO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Daniels Jon G officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Folliard Thomas J director 4900 COX RD GELN ALLEN VA 23060
Livesay Jill A officer: VP, Controller & PAO CARMAX, INC. 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Cafritz Diane L officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Hill Edwin J officer: EVP & COO 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Blaylock Ronald E director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BLAYLOCK RONALD E a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Satriano Pietro director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD., STE 100 ROSEMONT IL 60018
Shinder Marcella director 12800 TUCKAHOE CREEK PARKWAY RICHMOND VA 23238
Steenrod Mitchell D director 12800 TUCKAHOE CREEK PKWY RICHMOND VA 23238
Mccreight David W. director C/O URBAN OUTFITTERS, INC. 5000 SOUTH BROAD STREET PHILADELPHIA PA 19112

CarMax Headlines

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