Is It Time To Buy Carvan Stock

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Is It Time To Buy Carvan Stock

Is It Finally Time To Buy Carvan Stock?

The Carvan stock price has declined by more than 30% in this year. This makes many wonder if it's finally time to buy the Caravan stock or if the better strategy is to wait on the sidelines?

Carvan is going through tough times in 2026, but a quick look at the last few years shows they were also not that great. Despite all the issues faced by the Carvan, the management has still managed to pull the company back from the brink of financial collapse.

Carvan's Revenue Was Recorded At $5.6 Billion

A quick look at the Carvan's data shows its revenue in Q4 was up by 58% y/y and was recorded at $5.6 billion. The company also sold more than 163,000 units during the same period, which shows a 43% increase.

In the complete year 2025, Carvan sold 600K units and earned a revenue of $20.3 billion. Once again, these numbers are impressive and show a healthy growth rate.

So, if everything is so great with Carvan, then why does the stock price continue to move lower? The Q4 EBITDA of Carvan was $511 million, which looks great on paper. However, the EBITDA margin shrank from 11.3% to just 9.1%, which clearly highlights the actual picture.

Another thing that is putting pressure on Carvan stock is its high valuation. Although the stock is down by double digits in 2026, it still has a premium valuation.

The P/E ratio of Carvan stock is 33, which is very high for a company of this size. In simple words, the Carvan stock price is very high compared to the earnings.

Considering all of these, the best strategy is to only take a small position in the Carvan stock. The risks are just too high to take a full-fledged position in the Carvan stock.

This way, you can stand to gain outsized gains if the Carvan manages to make a turnaround in 2026. But for those investors with a small risk appetite, the safe approach is to avoid Carvan stock.

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