Carvana Co.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $929M TTM FCF base; 25% annual FCF growth years 1-3; 15% years 4-6; 8% years 7-10; 9% discount rate; 3% terminal growth; -$2.57B net debt; 1.11B shares outstanding.

Reasoning: Carvana is a capital-intensive, high-growth used-vehicle e-commerce and reconditioning platform with historically volatile earnings; a multi-stage FCF DCF captures the deceleration from hyper-growth recovery rates toward a mature auto-retail growth profile, and a 9% discount rate reflects elevated leverage and execution risk despite recently positive free cash flow.