Is CarMax, Inc. overvalued or undervalued?

Jun 25 2025 09:00 AM IST
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As of June 20, 2025, CarMax, Inc. is considered undervalued with a valuation grade upgrade to very attractive, featuring a P/E ratio of 20, a Price to Book Value of 1.60, and a ROE of 8.02%, despite a year-to-date stock decline of 17.84% compared to a 2.44% increase in the S&P 500.
As of 20 June 2025, the valuation grade for CarMax, Inc. has moved from fair to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 20, a Price to Book Value of 1.60, and a ROE of 8.02%.

In comparison to peers, Williams-Sonoma, Inc. has a more attractive P/E ratio of 17.27, while Penske Automotive Group, Inc. stands out with a notably lower P/E of 11.76. Despite recent stock performance showing a decline of 17.84% year-to-date compared to a 2.44% increase in the S&P 500, the current valuation suggests that CarMax, Inc. presents a compelling investment opportunity given its attractive grade change and relative undervaluation.
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