Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, CarMax's PEG is 1. CarMax's 5-Year TTM EBITDA Growth Rate is 6.94.
CarMax's EPS without NRI for the trailing twelve months (TTM) ended in May. 2023 was $2.91. Therefore, the Peter Lynch Fair Value for today is $20.20.
As of today (2023-09-21), CarMax's share price is $78.90. CarMax's Peter Lynch fair value is $20.20. Therefore, CarMax's Price to Peter Lynch Fair Value Ratio for today is 3.91.
The historical rank and industry rank for CarMax's Peter Lynch Fair Value or its related term are showing as below:
KMX'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.87 Med: 1.28 Max: 3.98
Current: 3.91
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of CarMax was 3.98. The lowest was 0.87. And the median was 1.28.
KMX's Price-to-Peter-Lynch-Fair-Value is ranked worse than 89.86% of 365
companies
in the Vehicles & Parts industry
Industry Median: 0.97
vs KMX: 3.91
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
CarMax Peter Lynch Fair Value Historical Data
The historical data trend for CarMax's Peter Lynch Fair 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
Feb14
Feb15
Feb16
Feb17
Feb18
Feb19
Feb20
Feb21
Feb22
Feb23
Peter Lynch Fair Value
63.85
81.98
61.34
115.68
28.75
CarMax Quarterly Data
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Peter Lynch Fair Value
92.83
71.32
42.88
28.75
20.20
Competitive Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Peter Lynch Fair Value, along with its competitors' market caps and Peter Lynch Fair 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 Peter Lynch Fair Value Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Peter Lynch Fair Value distribution charts can be found below:
* The bar in red indicates where CarMax's Peter Lynch Fair Value falls in comparison to its industry or sector. The grey bar indicates the Peter Lynch Fair Value's extreme value range as defined by GuruFocus.
CarMax Peter Lynch Fair Value Calculation
CarMax's Peter Lynch Fair Value for today is calculated as
CarMax's EPS without NRI for the trailing twelve months (TTM) ended in May. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.91.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
CarMax (NYSE:KMX) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 6.94 instead of 15 in this case.
CarMax's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
78.90
/
20.20
=
3.91
* 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 Peter Lynch Fair Value Related Terms
Thank you for viewing the detailed overview of CarMax's Peter Lynch Fair 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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