CPRT
Copart
Platform / Network
Price today
$27.33
what the market pays
Worth
$35.52
calculated cycle value
Price is 23% below its value
charlieapp.co
A monopoly position
This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Digital platform
$35.52
per share
How it's calculated
Copart — high assistant path (2026-06-07). Review note.
Total calculated value
business + cash
How many times the cash flow
Platform / Network · vs 27 peers
You pay 16.9x times this business's cash flow; its sector median is 28.5x.
30% below what Charlie thinks it's worth (21.9x) — that gap is your safety margin.
Why Undervalued?
Its free cash flow is $1.62/share × 21.9x multiplier = $35.52 in intrinsic value. Today's price of $27.33 is 30% below that value — there's a real safety margin to enter.
The price is 23% below the calculated value. There's a real safety margin.
The model asks for a discount to absorb estimate errors. That cushion is here.
If the business disappoints a little, the price should hold near $28.42.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$28.42
-20% off Value
🟡 Discounted
≤$33.74
-5% off Value
🟢 Today
$27.33
+30% Valor
Undervalued
Today's price offers a real discount to the calculated value. For the long run, this is the kind of entry that builds wealth.
“Price is what you pay. Value is what you get.”
— Warren Buffett
Model updated · July 2026
The business
Copart is the global junkyard where the dead car your insurance totaled gets auctioned.
Copart auctions wrecked vehicles online, connecting insurers settling total losses with global buyers —dismantlers, repair shops, exporters. It charges fees on both sides of every transaction on its VB3 platform, plus fees for storage, transport, and processing. It moves more than 3 million cars a year with $4.6B in revenue.
Two-sided network effect: more vehicles attract more bidders, and more bidders drive up the prices insurers receive, which then brings more vehicles. On top of that, it owns hundreds of physical lots near urban areas —impossible to replicate due to permits and land. Insurers integrate their systems with Copart; switching providers is a headache nobody wants.
Revenue history
From $2.7B to $4.6B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $4.6B · FY2025
Of every $100 in sales, $67 goes to costs and operations; $33 is left as net profit (33% margin).
Catalysts and risks
International expansion: Germany, UK, and Middle East still with low penetration of the digital auction model.
More cars declared total losses: with vehicles loaded with electronics, repairing costs more than settling —drives structural volume.
$4.6B in FY2025 revenue with operating margin above 35% and net cash: capacity to buy land counter-cyclically.
Insurer concentration: a few large clients move a lot of volume; losing one hurts.
Sensitivity to steel and used car prices —if auction values fall, fees fall.
Demanding valuation: the market already pays for future growth, leaving little room to disappoint.
Charlie's note
“A toll-booth business disguised as a scrapyard. The network strengthens itself and the net cash provides staying power; the problem is paying a fair price for something everyone knows is good.”
Analysis · June 2026
So when would be a good price for Copart?
Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.