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CarMax (FRA:XA4) PB Ratio : 2.28 (As of Dec. 14, 2024)


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What is CarMax PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-12-14), CarMax's share price is €82.30. CarMax's Book Value per Share for the quarter that ended in Aug. 2024 was €36.08. Hence, CarMax's PB Ratio of today is 2.28.

The historical rank and industry rank for CarMax's PB Ratio or its related term are showing as below:

FRA:XA4' s PB Ratio Range Over the Past 10 Years
Min: 1.58   Med: 3.6   Max: 5.11
Current: 2.17

During the past 13 years, CarMax's highest PB Ratio was 5.11. The lowest was 1.58. And the median was 3.60.

FRA:XA4's PB Ratio is ranked worse than
62.9% of 1275 companies
in the Vehicles & Parts industry
Industry Median: 1.45 vs FRA:XA4: 2.17

During the past 12 months, CarMax's average Book Value Per Share Growth Rate was 5.10% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 12.90% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 14.50% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 11.20% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of CarMax was 21.00% per year. The lowest was -26.40% per year. And the median was 12.90% per year.

Back to Basics: PB Ratio


CarMax PB Ratio Historical Data

The historical data trend for CarMax's PB Ratio 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 PB Ratio Chart

CarMax Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.63 4.41 3.32 1.93 1.97

CarMax Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
PB Ratio Get a 7-Day Free Trial 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 2.16 1.63 1.97 1.75 2.12

Competitive Comparison of CarMax's PB Ratio

For the Auto & Truck Dealerships subindustry, CarMax's PB Ratio, along with its competitors' market caps and PB Ratio 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's PB Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's PB Ratio distribution charts can be found below:

* The bar in red indicates where CarMax's PB Ratio falls into.



CarMax PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

CarMax's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Aug. 2024)
=82.30/36.083
=2.28

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


CarMax  (FRA:XA4) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


CarMax PB Ratio Related Terms

Thank you for viewing the detailed overview of CarMax's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


CarMax Business Description

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 around 250 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 (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

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