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CVNA:NYSECarvana Co. Analysis

Data as of 2026-03-10 - not real-time

$328.26

Latest Price

8/10Risk

Risk Level: High

Executive Summary

Carvana (CVNA) trades well above its discounted cash‑flow estimate, indicating significant overvaluation despite robust revenue growth and an impressive return on equity. Technical signals are mixed: price sits below short‑ and long‑term moving averages, RSI hovers in neutral territory, while MACD shows a modest bullish histogram. Recent news highlights rising short‑interest and pressure from earnings, adding downside risk in the near term, but analysts maintain a buy consensus with high price targets, reflecting confidence in the company’s scale‑up strategy.
Overall, the stock faces high market volatility and sector cyclicality, yet its growth trajectory and strategic initiatives could reward patient investors over a longer horizon.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 6/10

Key Factors

  • Current price far exceeds DCF fair value
  • High beta and volatility amplify downside risk
  • Rising short‑interest adds pressure

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • Sustained revenue growth and improving operating margins
  • Analyst consensus remains bullish with elevated price targets
  • Debt load remains high but manageable relative to cash generation

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Leadership in the online used‑car market and national scale‑up plans
  • Strong ROE and ROA indicating efficient capital use
  • Long‑term secular demand for convenient vehicle purchasing

Key Metrics & Analysis

Financial Health

Revenue Growth58.00%
Profit Margin6.92%
P/E Ratio38.9
ROE67.95%
ROA10.86%
Debt/Equity133.12
P/B Ratio13.6
Op. Cash Flow$1.0B
Free Cash Flow$249.9M

Technical Analysis

TrendNeutral
RSI41.1
Support$299.30
Resistance$419.85
MA 20$342.25
MA 50$399.41
MA 200$365.66
MACDBullish
VolumeDecreasing
Fear & Greed Index75.89

Valuation

Fair Value$30.65
Target Price$428.50
Upside/Downside30.54%
GradeOvervalued
TypeGrowth

Risk Assessment

Beta2.34
Volatility74.89%
Sector RiskHigh
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.