CarMax operates as a retailer of used vehicles in the United States. The company lost more than 9% of its value today and continue falling after the earnings announcement. What can multiples tell us about the stock potential? As we can see, the company is slightly undervalued according to market average numbers. Starting from TEV/Revenue and so on. The most interesting fact in terms of multiples is that the company's operating stats and margins are in market. For example, CarMax has around 16% in Gross margin with right the same as market median, however, lower than market mean. But if we check the EBITDA margin and EBIT margin, they are higher than market median and close to market mean. It means if we exclude the extremums, the company performs the same as all other companies on the market. The company's financials seem to be very solid. The company increased its FCFF significantly, from $2.9M last year to $278M LTM. The main changes occurred in Net Working Capital, the company decreased its current liabilities by paying out current liabilities and improved current assets in terms of inventories. The company still wants to continue its share repurchase program and CarMax has more than $1.5B for that. This is another sign for me, that the company is undervalued. I saw the right definition of the repurchase program on Investopedia.com: When a company does repurchase shares, it will usually say something along the lines of, "We find no better investment than our own company." If we check the operating statistics, the company increased its used unit sold and increased its total wholesale unit sales. CarMax improved its EBIT margin by just 0.1% but still that's a good trend. The company keeps the same level of EBIT margin for over than 4 years. The situation with EBITDA margin is the same. The business efficiency of this business is very high, the business itself is very stable. I suppose that investors should wait for a huge steps up or down, but I will recommend to check the company for long-term investment.