Does Carvana's High Price-to-Sales Multiple Still Make Sense?
Key Takeaways CVNA's forward sales multiple of 3.65 far exceeds peers and its five-year average valuation. Carvana's Q1 retail unit sales jumped 45.7%, outpacing rivals' single-digit growth rates. CVNA posted record Q1 EBITDA of $488B and leads peers with an 11.5% adjusted EBITDA margin.Used car e-retailer Carvana Inc. (CVNA) is trading at a forward sales multiple of 3.65, well above the auto sector as well as its own five-year average. Image Source: Zacks Investment ResearchTo put it in perspective, that ...