Apr. 24 at 8:28 PM
$CPRT Putting Copart (
$CPRT) valuation into perspective:
~
$32B market cap
– ~
$5B net cash (no debt)
Enterprise value: ~
$27B
At roughly ~
$1.5B in annual free cash flow, that’s ~18x FCF for the core business.
This is a duopoly industry where Copart holds a dominant global share in salvage auctions—high barriers to entry, strong network effects, and limited real competition.
Historically, Copart has traded in the mid-20s to 30+ multiple of free cash flow, reflecting its durability and compounding profile.
On top of that, Copart owns roughly ~
$10B+ in land tied to its yard network. This isn’t excess—it’s core infrastructure that is extremely difficult to replicate today due to zoning, environmental, and regulatory constraints, and it likely appreciates over time.
So today’s valuation reflects a compressed multiple for a debt-free compounder with dominant positioning and embedded, hard-to-replicate real estate.
