CarMaxMEX:KMX 58 PEG Ratio is 10.30 as of Jul. 03, 2026, which is 663% above its 10-year median of 1.35. GuruFocus rates MEX:KMX with a GF Score™ of 58/100 and a GF Value™ of MXN1,349.59 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 672 Vehicles & Parts companies, CarMax ranks worse than 92.86% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, CarMax's PE Ratio without NRI is 17.51. CarMax's 5-Year EBITDA growth rate is 1.70%. Therefore, CarMax's PEG Ratio for today is 10.30.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for CarMax's PEG Ratio or its related term are showing as below:
MEX:KMX'
s PEG Ratio Range Over the Past 10 Years
Min: 0.45 Med: 1.35 Max: 40.85
Current: 11.02
During the past 13 years, CarMax's highest PEG Ratio was 40.85. The lowest was 0.45. And the median was 1.35.
MEX:KMX's PEG Ratio is ranked worse than 92.86% of 672
companies
in the Vehicles & Parts industry
Industry Median: 1.12
vs MEX:KMX: 11.02
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
CarMax (MEX:KMX) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
CarMax PEG Ratio Related Terms
CarMax PEG Ratio Historical Data
* Premium members only.
The historical data trend for CarMax's PEG 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.
For the Auto & Truck Dealerships subindustry, CarMax's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's PEG Ratio distribution charts can be found below:
* The bar in red indicates where CarMax's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
CarMax (MEX:KMX) has a PEG Ratio of 10.30 as of Jul. 03, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on CarMax and its competitors. This is 663% above median its historical median of 1.35. Over the past decade, CarMax's PEG Ratio has ranged from 0.45 to 40.85. According to the industry distribution chart, CarMax ranks #624 out of 672 companies in the Vehicles & Parts industry, placing it in the top 92.9%.
Is CarMax's PEG Ratio too high?
CarMax's current PEG Ratio of 10.30 is 663% above median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 40.85. The Vehicles & Parts industry median PEG Ratio is 1.12. CarMax's value of 10.30 is 819.6% above this industry median. Based on the distribution chart, CarMax ranks #624 out of 672 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, CarMax has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CarMax's PEG Ratio compare to LAD and AN?
According to the Vehicles & Parts industry distribution chart, CarMax ranks #624 out of 672 companies for PEG Ratio. This places CarMax in the lower half of its industry. The industry median PEG Ratio is 1.12. CarMax's value of 10.30 is 819.6% above this benchmark. Historically, CarMax's own PEG Ratio has ranged from 0.45 to 40.85 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 1.12, CarMax has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Vehicles & Parts company?
The median PEG Ratio among Vehicles & Parts companies is 1.12, based on 672 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarMax's current PEG Ratio of 10.30 is 819.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on CarMax and its competitors. For the Vehicles & Parts industry, the median PEG Ratio is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarMax's current PEG Ratio is 10.30, which is 663% above median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarMax stock overvalued right now?
Based on GuruFocus' analysis, CarMax (MEX:KMX) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,349.59, compared to a current price of MXN850.00 — trading 37% below its estimated fair value. The current PEG Ratio is 10.30, which is 663% above median its 10-year median of 1.35 and 819.6% above the Vehicles & Parts industry median of 1.12. CarMax's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For CarMax (MEX:KMX), the current PEG Ratio is 10.30 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CarMax (MEX:KMX) Overvalued in 2026?
Based on GuruFocus' analysis, CarMax stock appears to be undervalued.
The current stock price of MXN850.00 is trading 37% below its estimated GF Value™ of MXN1,349.59.
GuruFocus considers CarMax to be Possible Value Trap.
Key valuation signals for MEX:KMX:
PEG Ratio: 10.30 (663% above median its 10-year median of 1.35)
GF Value™: MXN1,349.59 vs. price of MXN850.00 (37% below fair value)
Industry Position: 819.6% above the Vehicles & Parts median (#624 of 672)
No single metric tells the full story. See the MEX:KMX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CarMax sells, finances, and services used and new cars through a chain of over about 260 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 were 80% of fiscal 2026 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2026, the company retailed and wholesaled 780,684 and 538,203 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US, but still estimates that it had only about 3.6% US market share of vehicles zero to 10 years old in calendar 2025. CarMax is based in Richmond, Virginia.
58GF Score
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