Update shared on04 Aug 2025
Fair value Increased 18%Carvana's higher price target is underpinned by a sharp decrease in its future P/E ratio and accelerated revenue growth forecasts, resulting in the consensus analyst price target rising from $338.55 to $400.95.
What's in the News
- Carvana plans to add Inspection and Reconditioning Center (IRC) capabilities to its ADESA Seattle site, increasing national reconditioning capacity, enhancing retail and wholesale offerings, and creating around 100 new jobs in Auburn, Washington.
- Carvana will also bring IRC capabilities to ADESA Nashville, expanding production capacity, retail inventory, and same-day delivery options, with the creation of about 100 new jobs and leveraging its proprietary CARLI software.
- Same-day vehicle delivery has expanded to the Denver area, offering faster service and same-day options for customers selling or buying vehicles through Carvana.
- Carvana was dropped from multiple Russell indices, including Russell Small Cap, Russell 1000 Value, Russell 2500, Russell 3000E Value, Russell 2500 Growth, and Russell Midcap Value benchmarks and indices, indicating a significant change in index inclusion.
- At its AGM, Carvana approved an amendment to its certificate of incorporation to allow for the exculpation of certain officers as permitted by Delaware law.
Valuation Changes
Summary of Valuation Changes for Carvana
- The Consensus Analyst Price Target has significantly risen from $338.55 to $400.95.
- The Future P/E for Carvana has significantly fallen from 68.07x to 39.47x.
- The Consensus Revenue Growth forecasts for Carvana has significantly risen from 22.4% per annum to 26.1% per annum.
Disclaimer
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