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Copart (CPRT) Stock Dropped, So What Is Driving Attention Now?

Simply Wall St · 2d ago

Copart (CPRT) has given investors a busy September. Fresh Q4 2026 earnings, featuring a revenue beat alongside an earnings miss, arrived just as the company agreed to acquire ACV Auctions for about US$1.9b in cash.

The latest moves landed in a tough stretch for Copart’s shareholders. The share price is down 4% over the past day and 8.43% over the past week, while the year-to-date share price return has declined 18.59% and the 1-year total shareholder return is down 37.12%. This points to fading momentum despite the new earnings and acquisition headlines.

Compare Copart’s recent setback with other asset light businesses under pressure by screening for 11 resilient stocks with low risk scores that may ride out choppy periods with stronger balance sheets and steadier cash flows.

Copart looks like a solid, asset light operator with fresh revenue momentum and a new ACV Auctions deal, yet the share price slide tells a different story. Is that quality now on sale or already fully reflected?

Most Popular Narrative: 37.2% Undervalued

Copart’s most followed valuation story pegs fair value near $49 per share, well above the recent $30.75 close, which points to a wide gap between narrative and market pricing.

The market is treating Copart like a broken growth stock. I think it may be pricing a temporary slowdown as permanent decline.

Copart is no longer growing like the premium compounder investors once celebrated.

Read the complete narrative.

Want to see why that narrative still lands on an undervalued tag for Copart at a 7.1% discount rate? The crux is a specific blend of measured revenue growth, resilient margins, and a future earnings multiple that looks more like a traditional industrial than a high flying marketplace. Curious which assumptions in that mix do the heavy lifting in getting from $30.75 to a fair value near $49.

Result: Fair Value of $49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

Still, Copart’s story can crack if US growth stays muted while the ACV Auctions deal drags on returns or exposes weaker demand than the model assumes.

Find out about the key risks to this Copart narrative.

Another View On Copart’s Valuation

The popular Copart story leans on a fair value of $49 using user assumptions. A different check comes from the P/E ratio. CPRT trades around 18.3x earnings, while peers average 32.1x and the fair ratio sits near 21.3x. That gap hints at upside but also leaves less room if earnings soften.

For a closer read on what those P/E gaps could mean for future returns, have a look at the See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:CPRT P/E Ratio as at Sep 2026
NasdaqGS:CPRT P/E Ratio as at Sep 2026

Next Steps

Conflicted by the mixed tone around Copart and its latest moves? Use the data, stress test the assumptions, and then weigh the 3 key rewards.

Looking for more investment ideas beyond Copart?

If Copart’s recent moves have you reassessing your watchlist, you can broaden the lens and line up a few fresh ideas before the next catalyst hits.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.