This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. CarMax's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was $167.182. CarMax's 10-Year median PS Ratio is 0.7698. Therefore, the Median PS Value for today is $128.69.
As of today (2024-04-23), CarMax's share price is $67.88. CarMax's Median PS Value is $128.69. Therefore, CarMax's Price to Median PS Value for today is 0.52.
The historical rank and industry rank for CarMax's Median PS Value or its related term are showing as below:
KMX'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.46 Med: 0.87 Max: 1.49
Current: 0.52
During the past 13 years, the highest Price to Median PS Value of CarMax was 1.49. The lowest was 0.46. And the median was 0.87.
KMX's Price-to-Median-PS-Value is ranked better than 84.51% of 762
companies
in the Vehicles & Parts industry
Industry Median: 0.89
vs KMX: 0.52
CarMax Median PS Value Historical Data
The historical data trend for CarMax's Median PS 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
Median PS Value
96.27
91.12
158.40
149.11
128.69
CarMax Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Median PS Value
149.11
139.82
133.35
130.31
128.69
Competitive Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-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 Price-to-Median-PS-Value Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where CarMax's Price-to-Median-PS-Value falls into.
CarMax Median PS Value Calculation
CarMax's Median PS Value for today is calculated as
10-Year Median PS Ratio is 0.7698.
CarMax's Revenue per Share 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 $167.182.
* 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) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
CarMax's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
67.88
/
128.69
=
0.53
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of CarMax's Median PS 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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