CarMax, Inc. (KMX) fair value analysis

S&P 500 · Updated 2026-09-07

CarMax, Inc. is the largest retailer of used automobiles in the United States, operating a nationwide chain of physical dealership locations where customers can purchase pre-owned vehicles. The company also provides automotive financing services and extended warranty products to support its vehicle sales operations across its store network.

Forward Fair Value verdict

Fairly valued

Based on TickrTrends' weekly Forward Fair Value model, KMX is trading at within about 10% of estimated fair value.

KMX currently ranks #59 of 88 Consumer Cyclical stocks by discount to Forward Fair Value. It has screened as Fairly valued for 3 consecutive weekly runs.

Last price: $63.29
Sector: Consumer Cyclical
12-month range: $38.53–$61.00

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: F
Leverage: High
Margin trend: Expanding
Revenue growth: Modest
RSI zone: Neutral
52-week position: The top quarter of its range

What our data shows for KMX

Our model validated 17 trailing price-to-earnings windows for KMX, built from quarterly earnings records.
Shares are trading in the upper third of their 12-month price range of $38.53–$61.00.
The 14-day relative strength index sits at a neutral 67.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for KMX
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent KMX news

TickrTrends' derived news-sentiment signal for KMX is currently leaning positive, computed from recent coverage.

Vulcan Value Partners on CarMax’s (KMX) Strong Performance (finance.yahoo.com, 2026-07-30)
TickrTrends take: CarMax operates in the Consumer Cyclical sector, which is sensitive to economic conditions and consumer spending patterns. The company's strong performance noted by Vulcan Value Partners occurs within a backdrop where TickrTrends currently assesses KMX as fairly valued, suggesting the market has already priced in expectations for the business. Valuation-focused readers should monitor whether CarMax can sustain this performance level, as any deterioration in results or changes in consumer cyclical demand could shift the valuation assessment.
CarMax: Business Is Improving, But Not Good Enough (Rating Upgrade) (NYSE:KMX) (seekingalpha.com, 2026-07-20)
TickrTrends take: CarMax has received a rating upgrade despite the headline's cautionary tone, suggesting analysts see sequential business improvement even if absolute performance remains constrained. Given TickrTrends' fairly valued assessment for KMX, investors focused on valuation should monitor whether the company's operational improvements can translate into margin expansion or earnings growth that might justify a premium valuation in the future. As a consumer cyclical business, CarMax remains sensitive to broader economic conditions and consumer spending patterns, which will be critical factors in determining whether current improvement trends can sustain and accelerate.
CarMax Recognized as One of the 50 Most Community-Minded Companies in the US (manilatimes.net, 2026-06-30)
TickrTrends take: CarMax has been recognized as one of the 50 most community-minded companies in the US, which may reflect positively on its brand reputation and customer loyalty within the Consumer Cyclical sector. While corporate social responsibility initiatives can strengthen long-term customer relationships and reduce regulatory risks, these factors are already reflected in TickrTrends' current Fairly valued assessment of KMX. Investors focused on valuation should monitor whether community engagement translates into measurable competitive advantages or customer retention metrics that could justify a premium valuation in the future.

What people are saying

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TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — No material change this week: the verdict, bands and grades all held steady.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is KMX stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), KMX is trading at within about 10% of estimated fair value and screens as fairly valued. The exact fair value and discount are available to subscribers.

What is KMX's TickrTrends verdict?

KMX's current verdict is Fairly valued, refreshed with every weekly Forward Fair Value run.

How does KMX compare to other Consumer Cyclical stocks?

KMX ranks #59 of 88 Consumer Cyclical stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is KMX overbought or oversold?

KMX's 14-day RSI is in neutral territory - neither overbought nor oversold.

All Consumer Cyclical fair-value coverage →

Head-to-head comparisons

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