Carvana has a ‘competitive moat' over CarMax. But don't sleep on CarMax's stock, Morgan Stanley says.
Morgan Stanley cuts its price target on CarMax shares but sees upside despite competition from Carvana.
Fiscal Year: January - December
Carvana Co. (CVNA), listed on the NYSE, has a market capitalization of $. As of Oct 03, 2025, the stock is trading at $375.72 per share, offering investors a clear view of its current market value. Carvana Co. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 93.57, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Carvana Co. also offers a dividend yield of N/A , making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Carvana Co. (CVNA) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Carvana Co. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Carvana Co., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Carvana Co. is 133.23, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Carvana Co. (CVNA) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Carvana Co. (CVNA) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Carvana Co. (CVNA) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Carvana Co.. To access the full SS Score, consider upgrading your subscription.
Carvana Co. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 93.57. Investors should compare these metrics with industry peers to gauge whether Carvana Co. is outperforming or underperforming within its sector.
Morgan Stanley cuts its price target on CarMax shares but sees upside despite competition from Carvana.
Carvana (CVNA) had a bumpy road that led the stock to more than 125% year-over-year gains. An upgrade from Jefferies calls it a "best-positioned" stock in the used car market as the company drives tow...
Jefferies upgrades Carvana (CVNA) to buy and raised its price target to $475, noting a shift in consumers from in-store purchases to online helping the auto industry. Marley Kayden notes the stock's a...
PHOENIX--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the leading e-commerce platform for buying and selling used cars, today announced it will report its third quarter 2025 financial results for the period...
Hertz Global Holdings Inc (NASDAQ: HTZ) is extending gains this morning after announcing the launch of a fully online car-buying platform. HertzCarSales.com will now enable customers to browse invento...
SAN FRANCISCO--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced the launch of same-day vehicle delivery in the greater San Francisco ...
Carvana Co (NYSE: CVNA) experienced a significant Power Inflow alert, a key bullish indicator closely tracked by traders who value order flow analytics, specifically institutional and retail order flo...
While broad market performance has been robust, one striking aspect of this cycle has been the extraordinary gains in a handful of individual equities. Ten stocks in the large-cap Russell 1,000 have n...
SAN FRANCISCO--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced plans to bring Inspection and Reconditioning Center (IRC) capabilitie...
Carvana's rapid revenue and EPS growth justify its premium valuation, despite trading at a forward P/E nearly 3x higher than peers. Q2 2025 delivered record performance: 42% revenue growth, 41% increa...
SEATTLE--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced the launch of same-day vehicle delivery in the greater Seattle area. Select...
CINCINNATI--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, is once again teaming up with the Professional Pickleball Association (PPA Tour) to host...
DALLAS--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced plans to bring Inspection and Reconditioning Center (IRC) capabilities to it...
Carvana stock price has moved sideways in the past few days as the recent bull run took a breather. It was trading at $338 on Wednesday, down from the year-to-date high of $400.
Hertz and Amazon's used-car partnership touts convenience, which strikes at the heart of Carvana's business model.
Hertz stock rose after announcing a distribution pact for used car sales with Amazon.com.
Brian Nagel, Oppenheimer senior equity research analyst, joins 'The Exchange' to discuss the top tariff defense plays in retail and his expectations for earnings.
CHICAGO--(BUSINESS WIRE)--Carvana (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today announced the expansion of same-day vehicle delivery for customers in the greater Chi...
Carvana has reported that electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) made up 9% of total vehicles sold in Q2 2025, up from just over 2% in Q2 2023.
PHOENIX--(BUSINESS WIRE)--Carvana Co. (NYSE: CVNA), an industry pioneer for buying and selling used cars online, today released an EV Trends Report, highlighting continued momentum in battery electric...
Carvana previously struggled in a weakening used car market, but has resurged in a major turnaround. Growing efficiencies underline Carvana's advantageous business model and increasing moat. The Q2 re...
Carvana's promising performance metrics highlight its ongoing reversal from prior pandemic pains, as they competently monetize the used car inventories and in-house loan sales. These reasons may also ...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 1.11B | 33.72% | Est @33.7% |
2026 | 1.38B | 25.22% | Analyst x7 |
2027 | 2.11B | 52.19% | Analyst x4 |
2028 | 2.21B | 4.89% | Analyst x2 |
2029 | 3.10B | 40.22% | Analyst x2 |
2030 | 3.51B | 13.21% | Est @13.2% |
2031 | 3.86B | 9.94% | Est @9.9% |
2032 | 4.15B | 7.65% | Est @7.7% |
2033 | 4.40B | 6.04% | Est @6.0% |
2034 | 4.61B | 4.60% | Est @4.6% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 716.00M | 1.00 | 716.00M |
2024A | 827.00M | 1.00 | 827.00M |
2025E | 1.11B | 1.14 | 968.53M |
2026E | 1.38B | 1.30 | 1.06B |
2027E | 2.11B | 1.49 | 1.42B |
2028E | 2.21B | 1.70 | 1.30B |
2029E | 3.10B | 1.94 | 1.60B |
2030E | 3.51B | 2.22 | 1.58B |
2031E | 3.86B | 2.53 | 1.52B |
2032E | 4.15B | 2.89 | 1.44B |
2033E | 4.40B | 3.30 | 1.33B |
2034E | 4.61B | 3.77 | 1.22B |
Terminal | 40.41B | 3.77 | 10.73B |
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