Carmax Inc Stock Market Value
| KMX Stock | USD 70.27 0.58 0.83% |
| Symbol | CarMax |
CarMax Inc Price To Book Ratio
Is CarMax's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarMax. If investors know CarMax will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarMax listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Earnings Share 3.02 | Revenue Per Share 178.322 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0177 |
The market value of CarMax Inc is measured differently than its book value, which is the value of CarMax that is recorded on the company's balance sheet. Investors also form their own opinion of CarMax's value that differs from its market value or its book value, called intrinsic value, which is CarMax's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarMax's market value can be influenced by many factors that don't directly affect CarMax's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarMax's value and its price as these two are different measures arrived at by different means. Investors typically determine if CarMax is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarMax's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
CarMax 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to CarMax's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of CarMax.
| 03/25/2024 |
| 04/24/2024 |
If you would invest 0.00 in CarMax on March 25, 2024 and sell it all today you would earn a total of 0.00 from holding CarMax Inc or generate 0.0% return on investment in CarMax over 30 days. CarMax is related to or competes with AutoNation, OReilly Automotive, AutoZone, Advance Auto, and Ross Stores. CarMax, Inc., together with its subsidiaries, operates as a retailer of used vehicles in the United States More
CarMax Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure CarMax's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess CarMax Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.9 | |||
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 13.28 | |||
| Value At Risk | (3.53) | |||
| Potential Upside | 3.21 |
CarMax Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for CarMax's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as CarMax's standard deviation. In reality, there are many statistical measures that can use CarMax historical prices to predict the future CarMax's volatility.| Risk Adjusted Performance | 0.0178 | |||
| Jensen Alpha | (0.18) | |||
| Total Risk Alpha | (0.29) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.0119 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of CarMax's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
CarMax Inc Backtested Returns
We consider CarMax very steady. CarMax Inc secures Sharpe Ratio (or Efficiency) of 0.0233, which signifies that the company had a 0.0233% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for CarMax Inc, which you can use to evaluate the volatility of the firm. Please confirm CarMax's Risk Adjusted Performance of 0.0178, downside deviation of 2.9, and Mean Deviation of 1.68 to double-check if the risk estimate we provide is consistent with the expected return of 0.0543%. CarMax has a performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 2.43, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CarMax will likely underperform. CarMax Inc right now shows a risk of 2.33%. Please confirm CarMax Inc potential upside, as well as the relationship between the accumulation distribution and period momentum indicator , to decide if CarMax Inc will be following its price patterns.
Auto-correlation | 0.53 |
Modest predictability
CarMax Inc has modest predictability. Overlapping area represents the amount of predictability between CarMax time series from 25th of March 2024 to 9th of April 2024 and 9th of April 2024 to 24th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of CarMax Inc price movement. The serial correlation of 0.53 indicates that about 53.0% of current CarMax price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.53 | |
| Spearman Rank Test | 0.59 | |
| Residual Average | 0.0 | |
| Price Variance | 23.4 |
CarMax Inc lagged returns against current returns
Autocorrelation, which is CarMax stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting CarMax's stock expected returns. We can calculate the autocorrelation of CarMax returns to help us make a trade decision. For example, suppose you find that CarMax has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
CarMax regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If CarMax stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if CarMax stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in CarMax stock over time.
Current vs Lagged Prices |
| Timeline |
CarMax Lagged Returns
When evaluating CarMax's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of CarMax stock have on its future price. CarMax autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, CarMax autocorrelation shows the relationship between CarMax stock current value and its past values and can show if there is a momentum factor associated with investing in CarMax Inc.
Regressed Prices |
| Timeline |
CarMax Investors Sentiment
The influence of CarMax's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in CarMax. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to CarMax's public news can be used to forecast risks associated with an investment in CarMax. The trend in average sentiment can be used to explain how an investor holding CarMax can time the market purely based on public headlines and social activities around CarMax Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CarMax's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CarMax's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average CarMax's news discussions. The higher the estimated score, the more favorable is the investor's outlook on CarMax.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CarMax in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CarMax's short interest history, or implied volatility extrapolated from CarMax options trading.
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Complementary Tools for CarMax Stock analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.
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