KMX — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($41.81)
DCF	$-45.52	-208.9%
Graham Number	$53.94	+29.0%
Reverse DCF	—	implied g: 17.7%
DDM	—	—
EV/EBITDA	$41.81	-0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $648.44M

Near-term growth (yrs 1–5)(%)Rev: -6.7% / EPS: -47.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.30%

Computed WACC: 3.30%

Cost of equity (Re)11.61%(Rf 4.30% + β 1.33 × ERP 5.50%)

Cost of debt (Rd)0.60%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)25.39%

Debt weight (D/V)74.61%

Results

Intrinsic Value / share$533.96

Current Price$41.81

Upside / Downside+1177.1%

Net Debt (used)$17.84B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-44.83	$-28.45	$-9.40	$12.65	$38.04
8.0%	$-59.24	$-46.06	$-30.75	$-13.05	$7.31
9.0%	$-69.22	$-58.25	$-45.52	$-30.83	$-13.94
10.0%	$-76.55	$-67.19	$-56.35	$-43.85	$-29.50
11.0%	$-82.16	$-74.03	$-64.62	$-53.79	$-41.38

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $3.05

Book Value / share($)Yahoo: $42.39

Results

Graham Number$53.94

Current Price$41.81

Margin of Safety+29.0%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.30%

Terminal growth rate(%)

Computed WACC: 3.30%

Cost of equity (Re)11.61%(Rf 4.30% + β 1.33 × ERP 5.50%)

Cost of debt (Rd)0.60%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)25.39%

Debt weight (D/V)74.61%

Results

Current Price$41.81

Implied Near-term FCF Growth-13.3%

Historical Revenue Growth-6.7%

Historical Earnings Growth-47.2%

Base FCF (TTM)$648.44M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$41.81

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.06B

Target EV/EBITDA multipleCurrent: 22.5×

Net Debt($B)Default: $17.84B

Results

Implied Equity Value / share$41.81

Current Price$41.81

Upside / Downside-0.0%

Implied EV$23.77B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$9.84B	$13.84B	$17.84B	$21.84B	$25.84B
18.5x	$68.39	$40.18	$11.97	$-16.23	$-44.44
20.5x	$83.31	$55.10	$26.89	$-1.32	$-29.53
22.5x	$98.23	$70.02	$41.81	$13.60	$-14.61
24.5x	$113.15	$84.94	$56.73	$28.52	$0.31
26.5x	$128.06	$99.85	$71.64	$43.43	$15.23

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