Using the industry peer median P/E multiple (trailing + forward), Carvana Co. (CVNA) has a fair value of $200.64 based on 6 comparable companies in the Auto - Dealerships industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Carvana Co.CVNA | 67,418 | 35.6x | 40.7x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Hilton Worldwide Holdings Inc.HLT | 70,481 | 49.5x | 33.5x |
| General Motors CompanyGM | 70,067 | 23.0x | 6.1x |
| Industry Median | 31.8x | 27.3x | |
| (*) Profit after tax | 1,407 | 1,658 | |
| Equity Value | 44,765 | 45,235 | |
| (/) Outstanding shares | 224 | 224 | |
| Fair Price | $200 | $202 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.