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CarMax (NYSE:KMX) Peter Lynch Fair Value

: $42.88 (As of Today)
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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 EBITDA Growth Rate is 12.01. CarMax's EPS without NRI for the trailing twelve months (TTM) ended in Nov. 2022 was $3.57. Therefore, the Peter Lynch Fair Value for today is $42.88.

As of today (2023-03-25), CarMax's share price is $57.78. CarMax's Peter Lynch fair value is $42.88. Therefore, CarMax's Price to Peter Lynch Fair Value Ratio for today is 1.35.


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: 0.53   Med: 1.18   Max: 2.58
Current: 1.35


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of CarMax was 2.58. The lowest was 0.53. And the median was 1.18.


KMX's Price-to-Peter-Lynch-Fair-Value is ranked worse than
63.34% of 311 companies
in the Vehicles & Parts industry
Industry Median: 0.90 vs KMX: 1.35

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 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.32 63.85 81.98 61.34 115.68

CarMax Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
Peter Lynch Fair Value 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 118.68 115.68 92.83 71.32 42.88

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

Peter Lynch Fair Value=PEG Ratio*5-Year EBITDA Growth Rate*EPS without NRI (TTM)
=1* 12.01 *3.57
=42.88

CarMax's EPS without NRI for the trailing twelve months (TTM) ended in Nov. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.57.


* 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.

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 12.01 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
=57.78/42.88
=1.35

* 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 (NYSE:KMX) Business Description

CarMax logo
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 over 230 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 and wholesale about 13%, with the remaining portion composed of extended service plans and repair. In fiscal 2022, the company retailed and wholesaled 924,338 and 706,212 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 2021. It seeks over 5% share by the end of calendar 2025 and revenue of $33 billion-$45 billion by fiscal 2026. CarMax is based in Richmond, Virginia.
Executives
Enrique N Mayor-mora officer: SVP & CFO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Mark F Oneil director C/O CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Pietro Satriano director C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David W. Mccreight director C/O URBAN OUTFITTERS, INC., 5000 SOUTH BROAD STREET, PHILADELPHIA PA 19112
Peter J Bensen director MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Robert J. Hombach director C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Darren C Newberry officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Charles Joseph Wilson officer: SVP 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Sona Chawla director N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051
Diane L Cafritz officer: SVP & CHRO 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jill A Livesay officer: VP, Controller & PAO CARMAX, INC., 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
John T Standley director
Alan B. Colberg director ASSURANT, INC., ONE CHASE MANHATTAN PLAZA, 41 FL., NEW YORK NY 10005
Marcella Shinder director 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
Jon G Daniels officer: SVP, CAF 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238

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