Here Are the Facts You Need to Understand CVNA

We're taking a closer look at Carvana today, as the chatter surrounding the stock has increased notably in the last few weeks. Today, its shares moved 5.0% compared to 1.0% for the S&P 500. Increased investor interest and volatility surrounding the stock are not reason enough to buy in -- you should first perform your own due diligence. Here are some figures that can get you started:

  • Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States.

  • Carvana has moved 360.4% over the last year compared to 30.7% for the S&P 500 -- a difference of 329.7%

  • CVNA has an average analyst rating of hold and is 18.24% away from its mean target price of $159.58 per share

  • Its trailing 12 month earnings per share (EPS) is $2.49

  • Carvana has a trailing 12 month Price to Earnings (P/E) ratio of 75.8 while the S&P 500 average is 29.3

  • Its forward earnings per share (EPS) is $1.24 and its forward P/E ratio is 152.2

  • CVNA has a Price to Earnings Growth (PEG) ratio of 4.99, which shows the company is potentially overvalued when we factor growth into the price to earnings calculus.

  • The company has a Price to Book (P/B) ratio of 43.43 in contrast to the S&P 500's average ratio of 4.74

  • Carvana is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.6 and an average P/B of 3.19

  • Carvana has on average reported free cash flows of $-1130834666.7 over the last four years, during which time they have grown by an an average of 14.0%

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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