KMX

$45.47

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 8.42% trendline growth.
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$3,161.11

With 20% Margin of Safety (MoS):

$2,528.89
5461.66% upside
Capital Efficiency
Average Quarterly ROIC
0.55%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
64
NeutralWeighted across 6 signals
DCF Discount
5461.7% discount to price
100
FCF Yield
45.2% trailing FCF yield
100
ROIC vs WACC
ROIC 0.6% vs WACC 11.0% (0.1x)
3
Net Debt / FCF
5.5x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
99.6% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.
Narrative Score
56
Weak
Weighted across 6 recent drivers · Last 30 daysVs 6-Month Baseline: High (91th pct)
Trend: Improving upConfidence: 89%Updated: 4h ago
Sources: 210 (News 197 · Analyst 13)
Drivers
13 regulatory scrutiny+0.6
28 news sentiment+0.0
2 earnings beat-0.0
Upgrade headlines+0.0
Margin pressure-0.0
152 legal risk+0.0
Other Metrics
P/E14.8
Profit Margin1.6%
Owner Earnings$1.34b
One Dollar Premise0.00%
Debt/Equity3.33
Current Ratio2.29
PEG-1.328
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$317$329$333$450$73$59$110-$543-$303-$658$167-$50$216$468$95$832-$2,241$1,706$924$3,020
How Intrinziq Estimates Fair Value

Intrinziq estimates CarMax, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

CarMax, Inc.Consumer Cyclical

CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions. The company also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2022, it operated approximately 230 used car stores. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.