Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, CarMax's Enterprise Value is $29,991 Mil.
CarMax's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 was $1,405 Mil. Therefore, CarMax's EV-to-EBIT ratio for today is 21.35.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, CarMax's Enterprise Value is $29,991 Mil.
CarMax's EBITDA for the trailing twelve months (TTM) ended in Feb. 2024 was $1,665 Mil. Therefore, CarMax's EV-to-EBITDA ratio for today is 18.01.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, CarMax's Enterprise Value is $29,991 Mil.
CarMax's Revenue for the trailing twelve months (TTM) ended in Feb. 2024 was $26,536 Mil. Therefore, CarMax's EV-to-Revenue ratio for today is 1.13.
CarMax Enterprise Value Historical Data
The historical data trend for CarMax's Enterprise Value 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
Feb15
Feb16
Feb17
Feb18
Feb19
Feb20
Feb21
Feb22
Feb23
Feb24
Enterprise Value
30,029.55
34,895.44
36,780.07
29,530.74
31,187.68
CarMax Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Enterprise Value
29,530.74
30,407.43
31,914.27
28,987.02
31,187.68
Competitive Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Enterprise Value distribution charts can be found below:
* The bar in red indicates where CarMax's Enterprise Value falls into.
CarMax Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
CarMax's Enterprise Value for the fiscal year that ended in Feb. 2024 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 (NYSE:KMX) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
CarMax's current Enterprise Value is $29,991 Mil.
CarMax's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,405 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
CarMax's current Enterprise Value is $29,991 Mil.
CarMax's EBITDA for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,665 Mil.
CarMax's current Enterprise Value is $29,991 Mil.
CarMax's Revenue for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $26,536 Mil.
* 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of CarMax's Enterprise Value 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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