CarMax, Inc.

LSE:0HTQ Stock Report

Market Cap: US$12.1b

CarMax Valuation

Is 0HTQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HTQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$27.60
Fair Value
188.8% overvalued intrinsic discount
16
Number of Analysts

Below Fair Value: 0HTQ ($79.69) is trading above our estimate of fair value ($27.6)

Significantly Below Fair Value: 0HTQ is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HTQ?

Key metric: As 0HTQ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HTQ. This is calculated by dividing 0HTQ's market cap by their current earnings.
What is 0HTQ's PE Ratio?
PE Ratio26.3x
EarningsUS$460.96m
Market CapUS$12.14b

Price to Earnings Ratio vs Peers

How does 0HTQ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HTQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.2x
LOOK Lookers
7.9x-1.8%UK£503.2m
HFD Halfords Group
10.8x15.9%UK£277.6m
VTU Vertu Motors
9.3xn/aUK£179.3m
KGF Kingfisher
12.7x9.5%UK£4.4b
0HTQ CarMax
26.3x18.2%US$12.1b

Price-To-Earnings vs Peers: 0HTQ is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does 0HTQ's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2xn/aUS$15.37m
No more companies available in this PE range
0HTQ 26.3xIndustry Avg. 13.0xNo. of Companies3PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HTQ is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the UK Specialty Retail industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is 0HTQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HTQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: 0HTQ is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HTQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$79.69
US$89.33
+12.1%
18.9%US$123.00US$56.00n/a16
Jan ’26US$81.60
US$89.33
+9.5%
18.9%US$123.00US$56.00n/a16
Dec ’25US$83.97
US$82.42
-1.9%
20.5%US$123.00US$58.00n/a15
Nov ’25US$72.82
US$82.08
+12.7%
20.7%US$123.00US$58.00n/a15
Oct ’25US$77.22
US$81.88
+6.0%
21.0%US$123.00US$50.00n/a16
Sep ’25US$83.75
US$79.56
-5.0%
23.7%US$123.00US$50.00n/a16
Aug ’25US$81.40
US$79.56
-2.3%
23.7%US$123.00US$50.00n/a16
Jul ’25US$71.93
US$78.73
+9.5%
24.4%US$123.00US$50.00n/a15
Jun ’25US$69.81
US$79.63
+14.1%
24.0%US$125.00US$48.00n/a16
May ’25US$67.46
US$80.35
+19.1%
23.4%US$125.00US$48.00n/a17
Apr ’25US$87.46
US$84.34
-3.6%
22.9%US$135.00US$50.00n/a17
Mar ’25US$78.81
US$82.11
+4.2%
24.2%US$135.00US$50.00n/a15
Feb ’25US$72.20
US$80.98
+12.2%
24.8%US$135.00US$44.00n/a16
Jan ’25US$76.91
US$79.91
+3.9%
25.6%US$135.00US$44.00US$81.6016
Dec ’24US$65.70
US$78.03
+18.8%
27.3%US$135.00US$44.00US$83.9715
Nov ’24US$60.44
US$79.29
+31.2%
26.6%US$135.00US$44.00US$72.8215
Oct ’24US$70.58
US$80.60
+14.2%
25.5%US$135.00US$44.00US$77.2215
Sep ’24US$83.32
US$81.47
-2.2%
25.5%US$135.00US$44.00US$83.7515
Aug ’24US$83.62
US$81.40
-2.7%
25.3%US$135.00US$44.00US$81.4015
Jul ’24US$83.85
US$80.27
-4.3%
25.7%US$135.00US$44.00US$71.9315
Jun ’24US$71.87
US$72.88
+1.4%
29.7%US$141.00US$40.00US$69.8116
May ’24US$70.37
US$72.88
+3.6%
29.7%US$141.00US$40.00US$67.4616
Apr ’24US$63.43
US$66.00
+4.1%
34.1%US$141.00US$34.00US$87.4616
Mar ’24US$69.13
US$66.88
-3.3%
35.1%US$141.00US$26.00US$78.8116
Feb ’24US$72.00
US$66.80
-7.2%
36.3%US$141.00US$26.00US$72.2015
Jan ’24US$61.62
US$67.20
+9.1%
35.3%US$141.00US$26.00US$76.9115
Analyst Price Target
Consensus Narrative from 16 Analysts
US$90.18
Fair Value
11.6% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/18 10:24
End of Day Share Price 2025/01/17 00:00
Earnings2024/11/30
Annual Earnings2024/02/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

CarMax, Inc. is covered by 45 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Craig KennisonBaird
Ishan MajumdarBaptista Research