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Shares of Carmax Rank the Highest in Terms of EV/EBITDA Ratio in the Automotive Retail Industry (KMX, PAG, ORLY, LAD, MNRO)

By Nick Russo

Below are the three companies in the Automotive Retail industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Carmax ranks highest with a an EV/EBITDA ratio of 18.24. Penske Auto Group is next with a an EV/EBITDA ratio of 13.24. O'Reilly Automotive ranks third highest with a an EV/EBITDA ratio of 12.07.

Lithia Motors follows with a an EV/EBITDA ratio of 11.87, and Monro Muffler rounds out the top five with a an EV/EBITDA ratio of 10.68.

SmarTrend recommended that its subscribers protect gains by selling shares of Monro Muffler on May 1st, 2017 by issuing a Downtrend alert when the shares were trading at $51.82. Since that call, shares of Monro Muffler have fallen 11.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio CarMax penske auto group o'reilly automotive lithia motors monro muffler