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GuruFocus has detected 3 Warning Signs with CarMax Inc $KMX.
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CarMax Inc (NYSE:KMX)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
1.34 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, CarMax Inc's P/E (NRI) Ratio is 19.89. CarMax Inc's 5-year average EBITDA growth rate is 14.80%. Therefore, CarMax Inc's PEG for today is 1.34.

KMX' s PEG Ratio Range Over the Past 10 Years
Min: 0.49   Max: 40.38
Current: 1.34

0.49
40.38

During the past 13 years, CarMax Inc's highest PEG was 40.38. The lowest was 0.49. And the median was 1.33.

KMX's PEG Ratio is ranked higher than
56% of the 579 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.63 vs. KMX: 1.34 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

CarMax Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=19.8868501529/14.80
=1.34

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


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG 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.


Related Terms

P/E (NRI) Ratio, 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.

CarMax Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
peg 1.106.554.981.950.680.540.742.001.191.29

CarMax Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
peg 1.732.002.121.671.521.191.311.361.241.29
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