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CarMaxMEX:KMX 62 Graham Number is MXN903.80 as of May. 2026, which is 100% below its 10-year median of 1.64. GuruFocus rates MEX:KMX with a GF Score™ of 62/100 and a GF Value™ of MXN1,348.72 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 985 Vehicles & Parts companies, CarMax ranks better than 50.25% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-30), the stock price of CarMax is MXN1018.00. CarMax's graham number for the quarter that ended in May. 2026 was MXN903.80. Therefore, CarMax's Price to Graham Number ratio for today is 1.13.
The historical rank and industry rank for CarMax's Graham Number or its related term are showing as below:
MEX:KMX'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.73 Med: 1.64 Max: 2.29
Current: 1.15
During the past 13 years, the highest Price to Graham Number ratio of CarMax was 2.29. The lowest was 0.73. And the median was 1.64.
MEX:KMX's Price-to-Graham-Number is ranked better than 50.25% of 985
companies
in the Vehicles & Parts industry
Industry Median: 1.16
vs MEX:KMX: 1.15
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
CarMax (MEX:KMX) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
CarMax's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: May. 2026 )
=
1018.00
/
903.80
=
1.13
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
CarMax Graham Number Related Terms
CarMax Graham Number Historical Data
* Premium members only.
The historical data trend for CarMax's Graham Number 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: Graham Number Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where CarMax's Price-to-Graham-Number 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.
CarMax (MEX:KMX) has a Graham Number of MXN903.80 as of May. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on CarMax and its competitors. This is 55010% above median its historical median of 1.64. Over the past decade, CarMax's Graham Number has ranged from 0.73 to 2.29. According to the industry distribution chart, CarMax ranks #490 out of 985 companies in the Vehicles & Parts industry, placing it in the top 49.7%.
Is CarMax's Graham Number too high?
CarMax's current Graham Number of MXN903.80 is 55010% above median its 10-year median of 1.64. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 2.29. Based on the distribution chart, CarMax ranks #490 out of 985 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, CarMax has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarMax's Graham Number compare to ALTB and LAD?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #490 out of 985 companies for Graham Number. This puts CarMax in the upper half of its industry. The industry median Graham Number is 1.16. Historically, CarMax's own Graham Number has ranged from 0.73 to 2.29 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Vehicles & Parts company?
The median Graham Number among Vehicles & Parts companies is 1.16, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median Graham Number is 1.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current Graham Number is MXN903.80, which is 55010% above median its own 10-year median of 1.64. 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 MXN1,348.72, compared to a current price of MXN1,018.00 — trading 24.5% below its estimated fair value. The current Graham Number is MXN903.80, which is 55010% above median its 10-year median of 1.64. CarMax's overall GF Score™ is 62/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For CarMax (MEX:KMX), the current Graham Number is MXN903.80 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 24.5% below its estimated GF Value™ of MXN1,348.72.
GuruFocus considers CarMax to be Modestly Undervalued.
Key valuation signals for MEX:KMX:
Graham Number: MXN903.80 (55010% above median its 10-year median of 1.64)
GF Value™: MXN1,348.72 vs. price of MXN1,018.00 (24.5% below fair value)
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.
62GF Score
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