CarMax, Inc. (KMX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-1.2%

$56.60

vs $57.30 price

Levered DCF

$565.85

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.76

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.7×	25.77×	26.07×	22.64×	15.42×	26.5×	16.2×	12.86×
P/B	1.08×	2.06×	2.06×	1.95×	3.39×	4.54×	3.82×	3.23×
P/S	0.25×	0.49×	0.47×	0.37×	0.56×	1.05×	0.71×	0.6×
EV / EBITDA	14.93×	17.47×	18.75×	22.2×	17.68×	21.9×	16.6×	15.05×
Gross margin	10.8%	11.0%	10.2%	9.4%	10.3%	12.6%	13.4%	13.6%
Operating margin	-1.6%	-0.8%	-0.8%	-1.0%	1.7%	1.4%	2.7%	3.1%
Net margin	1.0%	1.9%	1.8%	1.6%	3.6%	3.9%	4.4%	4.6%
Current ratio	2.2×	2.31×	2.26×	2.6×	3.2×	2.42×	2.39×	2.45×
Debt / equity	3.02×	3.11×	3.18×	3.37×	3.68×	3.56×	4.21×	4.23×
Interest coverage	-0.47×	-0.25×	-0.27×	-0.72×	1.71×	3.17×	6.67×	7.36×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	4.2%	8.0%	7.9%	8.6%	22.0%	17.1%	23.6%	25.1%
Return on invested capital	-1.1%	-0.6%	-0.6%	-1.0%	1.7%	1.0%	2.1%	2.4%
Return on assets	0.9%	1.8%	1.8%	1.9%	4.4%	3.5%	4.2%	4.5%
Free cash flow yield	19.6%	1.2%	-0.1%	7.8%	-16.1%	2.5%	-4.0%	-1.3%
Earnings yield	3.9%	3.9%	3.8%	4.4%	6.5%	3.8%	6.2%	7.8%
Enterprise value	$24B	$32.1B	$31.2B	$29.6B	$36.9B	$35.2B	$30.2B	$25B
Net debt / EBITDA	10.98×	10.45×	11.25×	13.97×	9.18×	9.58×	8.69×	8.53×
Cash conversion cycle (days)	51	49	45	43	60	57	47	48