Autonation Inc (AN) is undervalued and Carmax Inc (KMX) is overvalued.
Against our estimates of intrinsic value, AN trades at the wider discount: a margin of safety of +35%, against -111% for KMX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.6% (average of 3 methods) values the shares at $261.45; the price of $169.61 is 35% below that value, and 84% of that value comes from beyond year five.
Leak Score 86/100 on 3 of 12 signals
Discounting its cash flows at 7.0% values the shares at $26.99; the price of $56.84 is 111% above that value.
Leak Score 0/100 on 3 of 12 signals
| Metric | AN | KMX |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $169.61 | $56.84 |
| Intrinsic value | $261.45 | $26.99 |
| Margin of safety | +35% | -111% |
| Leak Score | 86/100 (3/12) | 0/100 (3/12) |
| Market cap | $5.6B | $8.1B |
| Revenue growth, 5 years | 6.3% | 6.7% |
| Operating margin | 4.7% | 2.1% |
| Net margin | 2.8% | 0.8% |
| Return on equity | 32.8% | 3.6% |
| Debt to equity | 5.02 | 3.08 |
| P/E | 7.9x | 37.4x |
| Forward P/E | 6.8x | — |
| P/B | 2.5x | 1.3x |