CarMax, Inc.Opportunity Rank #145(KMX) Intrinsic Value & DCF Analysis (2026)
Current Price
$42.89
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
The intrinsic value of CarMax, Inc. (KMX) is estimated at $268.62 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $42.89, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.99% long-term growth rate and a 10.00% discount rate (calculated: 3.21%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of CarMax, Inc. (KMX) is estimated at $268.62 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $42.89, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.99% long-term growth rate and a 10.00% discount rate (calculated: 3.21%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Track ROIC vs WACC spread for sustained improvement.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
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.