P/E Ratio
Higher than 64% of Consumer Cyclical sector peers
Updated 79h ago
Sector Performance
64th percentileKMX
30.5x
Sector Median
27.6x
Sector Avg
43.7x
Deep Analysis
The current P/E ratio of 30.5x means investors are paying $30.50 for every $1 of CarMax's earnings—a standard measure of how expensive a stock is relative to its profitability.
This sits above the consumer cyclical sector median of 23.4x, placing the company in the 64th percentile among peers, meaning it is more expensive than roughly two-thirds of similar companies. Trend data is unavailable: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only the current value of 30.5x has been provided. The combination of a high valuation level with no trend history implies increased risk because the stock is already priced at a premium to its sector, and without trend information there is no evidence of earnings momentum to justify that premium. This metric directly supports the overall CAUTIOUS verdict, as the elevated P/E relative to the sector median signals limited upside potential and greater vulnerability to earnings disappointments.
Frequently Asked Questions
What does the P/E Ratio tell investors about KMX?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does KMX's P/E Ratio compare to its sector?
KMX's P/E Ratio of 30.5x compares to a Consumer Cyclical sector median of 27.6x, placing it in the 64th percentile.
Who are KMX's closest peers by P/E Ratio?
The closest Consumer Cyclical peers by P/E Ratio include: BKNG (27.6x), AMZN (29.0x), AMCR (29.1x), ABNB (31.1x), AZO (23.0x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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30.5x
Sector Median
27.6x
Sector Avg
43.7x
How KMX's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.