Copart Valuation Update
Shares are down by half and the stock is interesting again.
Disclosure: None
Copart is getting interesting again.
I first bought shares in 2018. The business itself grew substantially over the next few years, with a nearly 22% CAGR in net income through 2024. Then the stock price far outpaced the underlying business and traded north of 40x earnings.
I made the decision to sell at a price of $60, implying a market cap of $58.5 billion.
Shares today traded at $33.25, implying a market cap of around $32 billion.
Below are some comments on recent operating performance and capital allocation, and my thoughts on valuation.
