Copart: A Valuation Derating Has Made It A Buy (Rating Upgrade)

Copart, Inc. shares have declined ~46%, but now trade at a trough of 15.4x EV/EBITDA, well below historical multiples. Recent headwinds—declining insurance volumes and softer claims—are seen as transient, not indicative of structural weakness in CPRT's moat. CPRT management has initiated aggressive buybacks, repurchasing $1.1B in shares with $6.4B in liquidity and effectively no debt.