USD 35.14 as of today(2020-08-14). In depth view into CarMax Peter Lynch Fair Value explanation, calculation, historical data and more" />KMX Peter Lynch Fair Value | CarMax - GuruFocus.com
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CarMax Peter Lynch Fair Value

: USD 35.14 (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. The growth rate we use is the average growth rate for earnings per share over the past 5 years. 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.

Here, as of today, CarMax's PEG is 1. CarMax's 5-Year EBITDA Growth Rate is 9.32. CarMax's EPS without NRI for the trailing twelve months (TTM) ended in May. 2020 was USD 3.77. Therefore, the Peter Lynch Fair Value for today is USD 35.14.

As of today (2020-08-14), CarMax's share price is USD 104.36. CarMax's Peter Lynch fair value is USD 35.14. Therefore, CarMax's Price to Peter Lynch Fair Value Ratio for today is 2.97.


NYSE:KMX' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.53   Med: 1.18   Max: 2.97
Current: 2.97

0.53
2.97

During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of CarMax was 2.97. The lowest was 0.53. And the median was 1.18.


NYSE:KMX's Price-to-Peter-Lynch-Fair-Value is ranked lower than
83% of the 257 Companies
in the Vehicles & Parts industry.

( Industry Median: 1.18 vs. NYSE:KMX: 2.97 )

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


CarMax Peter Lynch Fair Value Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

CarMax Annual Data
Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.93 50.06 55.21 62.56 59.06

CarMax Quarterly Data
Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20
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 63.18 62.94 59.39 59.06 35.14

Competitive Comparison
* 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.


CarMax Peter Lynch Fair Value Distribution

* The bar in red indicates where CarMax's Peter Lynch Fair Value falls into.



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* 9.32 *3.77
=35.14

CarMax's EPS without NRI for the trailing twelve months (TTM) ended in May. 2020 was (Aug. 2019 ) + (Nov. 2019 ) + (Feb. 2020 ) + (May. 2020 ) = USD 3.77.


* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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. EBITDA growth is subject to less manipulations than net earnings per share. 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. The growth rate we use is the average growth rate for earnings 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 over the past 5 years, which is 9.32 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
=104.36/35.14
=2.97

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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