Post #2261 by maxthetrade on the Berkshire Hathaway board

If someone appears to be repeatedly personal, lean towards patience as they might not mean offense. If you are sure, however, then do not deepen the problem by being negative; instead, simply place them on ignore by clicking the unhappy yellow face to the right of their name.

- Manlobbi

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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Valueline estimates that KMX's EPS in the years 2026-2028 will be $4.40.

Also, the median P/E of KMX in the last 10 years has been 18. If we assume that multiple to apply in 2026-2028 (which, in my view is a very optimistic assumption, given the growth rate of EPS from now to then), the expected price then will be $79.20, as against a current price of $74.66.

KMX pays no dividends so if the assumption above bears out, we're looking at a 6 percent total return from now to 2026-2028.

Is anyone else concerned about this issue?

KMX P/S ratio is now as low as in 2020 and almost as low as during the abyss of 2008. In 2021 P/S ratio was around ~1.1x and it was clearly overvalued compared to it's history, now it sells for ~0.4x. If it's undervalued depends on wether you think they can get back to their historical margins. I'm betting they can.

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