KMXCAUTIOUS

KMX EV/EBITDA Analysis

26.1x

Higher than 89% of Consumer Cyclical sector peers

Updated 582h ago·SEC filings & market data

Key Takeaway

CarMax's EV/EBITDA of 26.1x means investors pay $26.1 for each dollar of earnings before interest, taxes, depreciation, and amortization.

Sector Performance

89th percentile

KMX

26.1x

Sector Median

10.0x

Sector Avg

15.5x

Prior Period

26.2x(Jul 2026)

→ Stable

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Deep Analysis

CarMax's EV/EBITDA of 26.1x means investors pay $26.1 for each dollar of earnings before interest, taxes, depreciation, and amortization.

This is higher than the sector median of 10.2x, placing CarMax at the 90th percentile among Consumer Cyclical peers. The trend is stable: the metric rose 3.2% year-over-year and fell 0.3% quarter-over-quarter. A high multiple with no clear upward or downward movement suggests the market is pricing in consistent performance, leaving limited room for upside unless earnings grow. The level indicates above-average valuation risk, while the stable trend reduces near-term volatility risk. This metric supports the CAUTIOUS verdict because the premium valuation is not backed by a strong positive trend.

Frequently Asked Questions

What does the EV/EBITDA tell investors about KMX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does KMX's EV/EBITDA compare to its sector?

KMX's EV/EBITDA of 26.1x compares to a Consumer Cyclical sector median of 10.0x, placing it in the 89th percentile.

Who are KMX's closest peers by EV/EBITDA?

The closest Consumer Cyclical peers by EV/EBITDA include: SKX (9.9x), AEO (10.2x), APTV (10.3x), PHM (9.0x), CZR (9.0x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.