DCF Tool

CRMT

Americas Car Mart, Inc. – Used Car Dealers
America's Car-Mart, Inc. operates automotive dealerships in twelve states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the 'Integrated Auto Sales and Finance' segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers.
Analysis Results
Intrinsic Value $7,367.86
Latest Price $78.17
Relative Value 99% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 68.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 68.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.332 0.312
2023 0.56 0.494
2024 0.944 0.783
2025 1.59 1.24
2026 2.69 1.97
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 62.0 billion. This corresponds to a present value of 42.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.8 billion. Adding in the terminal value gives a total present value of 47.4 billion.

There are presently 6.44 million outstanding shares, so the intrinsic value per share is 7367.86.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 719,762,000
Current Cash 0
Current Liabilities 332,370,000
Current Debt 0
Non-Cash Working Capital (NCWC) 387,392,000
Change in NCWC 106,114,000
EBIT 134,401,000
Tax Provision 30,302,000
Depreciation and Amortization 3,719,000
Capital Expenditure -8,952,000
Unlevered Free Cash Flow 204,989,015
Current Assets 569,654,000
Current Cash 0
Current Liabilities 288,376,000
Current Debt 0
Non-Cash Working Capital (NCWC) 281,278,000
Change in NCWC 35,001,000
EBIT 64,237,000
Tax Provision 13,008,000
Depreciation and Amortization 3,839,000
Capital Expenditure -5,422,000
Unlevered Free Cash Flow 84,670,044
Current Assets 463,650,000
Current Cash 0
Current Liabilities 217,373,000
Current Debt 0
Non-Cash Working Capital (NCWC) 246,277,000
Change in NCWC 31,733,000
EBIT 59,760,000
Tax Provision 12,226,000
Depreciation and Amortization 3,969,000
Capital Expenditure -4,029,000
Unlevered Free Cash Flow 79,225,588
Current Assets 426,635,000
Current Cash 0
Current Liabilities 212,091,000
Current Debt 0
Non-Cash Working Capital (NCWC) 214,544,000
Change in NCWC -7,288,000
EBIT 38,997,000
Tax Provision 2,397,000
Depreciation and Amortization 4,250,000
Capital Expenditure -2,258,000
Unlevered Free Cash Flow 31,298,393
Current Assets 393,764,000
Current Cash 0
Current Liabilities 171,932,000
Current Debt 0
Non-Cash Working Capital (NCWC) 221,832,000
Change in NCWC 9,445,000
EBIT 33,446,000
Tax Provision 12,037,000
Depreciation and Amortization 4,272,000
Capital Expenditure -1,587,000
Unlevered Free Cash Flow 33,089,507
Current Assets 371,186,000
Current Cash 0
Current Liabilities 158,799,000
Current Debt 0
Non-Cash Working Capital (NCWC) 212,387,000
Change in NCWC -2,005,000
EBIT 18,867,000
Tax Provision 6,902,000
Depreciation and Amortization 4,208,000
Capital Expenditure -4,526,000
Unlevered Free Cash Flow 9,504,318
Current Assets 366,043,000
Current Cash 0
Current Liabilities 151,651,000
Current Debt 0
Non-Cash Working Capital (NCWC) 214,392,000
Change in NCWC 20,010,000
EBIT 47,051,000
Tax Provision 17,544,000
Depreciation and Amortization 3,830,000
Capital Expenditure -4,009,000
Unlevered Free Cash Flow 49,331,658
Current Assets 329,029,000
Current Cash 0
Current Liabilities 134,647,000
Current Debt 0
Non-Cash Working Capital (NCWC) 194,382,000
Change in NCWC 4,083,000
EBIT 33,748,000
Tax Provision 12,543,000
Depreciation and Amortization 3,285,000
Capital Expenditure -7,095,000
Unlevered Free Cash Flow 21,449,689
Current Assets 327,729,000
Current Cash 0
Current Liabilities 137,430,000
Current Debt 0
Non-Cash Working Capital (NCWC) 190,299,000
Change in NCWC 16,607,000
EBIT 50,714,000
Tax Provision 18,491,000
Depreciation and Amortization 2,826,000
Capital Expenditure -5,726,000
Unlevered Free Cash Flow 45,908,828
Current Assets 283,038,000
Current Cash 0
Current Liabilities 109,346,000
Current Debt 0
Non-Cash Working Capital (NCWC) 173,692,000
Change in NCWC -1,237,000
EBIT 52,870,000
Tax Provision 19,792,000
Depreciation and Amortization 2,329,000
Capital Expenditure -4,452,000
Unlevered Free Cash Flow 29,683,875

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