LAD Relative Valuation
LAD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LAD is overvalued; if below, it's undervalued.
Historical Valuation
Lithia Motors Inc (LAD) is now in the Fair zone, suggesting that its current forward PE ratio of 8.92 is considered Fairly compared with the five-year average of 8.72. The fair price of Lithia Motors Inc (LAD) is between 294.34 to 430.28 according to relative valuation methord.
Relative Value
Fair Zone
294.34-430.28
Current Price：325.76
Fair
8.90
PE
1Y
3Y
5Y
Trailing
Forward
12.67
EV/EBITDA
Lithia Motors Inc. (LAD) has a current EV/EBITDA of 12.67. The 5-year average EV/EBITDA is 9.81. The thresholds are as follows: Strongly Undervalued below 5.15, Undervalued between 5.15 and 7.48, Fairly Valued between 12.13 and 7.48, Overvalued between 12.13 and 14.46, and Strongly Overvalued above 14.46. The current Forward EV/EBITDA of 12.67 falls within the Overvalued range.
13.20
EV/EBIT
Lithia Motors Inc. (LAD) has a current EV/EBIT of 13.20. The 5-year average EV/EBIT is 10.37. The thresholds are as follows: Strongly Undervalued below 5.26, Undervalued between 5.26 and 7.81, Fairly Valued between 12.92 and 7.81, Overvalued between 12.92 and 15.48, and Strongly Overvalued above 15.48. The current Forward EV/EBIT of 13.20 falls within the Overvalued range.
0.20
PS
Lithia Motors Inc. (LAD) has a current PS of 0.20. The 5-year average PS is 0.27. The thresholds are as follows: Strongly Undervalued below 0.09, Undervalued between 0.09 and 0.18, Fairly Valued between 0.36 and 0.18, Overvalued between 0.36 and 0.45, and Strongly Overvalued above 0.45. The current Forward PS of 0.20 falls within the Historic Trend Line -Fairly Valued range.
7.90
P/OCF
Lithia Motors Inc. (LAD) has a current P/OCF of 7.90. The 5-year average P/OCF is 34.33. The thresholds are as follows: Strongly Undervalued below -207.62, Undervalued between -207.62 and -86.64, Fairly Valued between 155.31 and -86.64, Overvalued between 155.31 and 276.29, and Strongly Overvalued above 276.29. The current Forward P/OCF of 7.90 falls within the Historic Trend Line -Fairly Valued range.
10.45
P/FCF
Lithia Motors Inc. (LAD) has a current P/FCF of 10.45. The 5-year average P/FCF is 29.15. The thresholds are as follows: Strongly Undervalued below -96.50, Undervalued between -96.50 and -33.67, Fairly Valued between 91.97 and -33.67, Overvalued between 91.97 and 154.80, and Strongly Overvalued above 154.80. The current Forward P/FCF of 10.45 falls within the Historic Trend Line -Fairly Valued range.
Lithia Motors Inc (LAD) has a current Price-to-Book (P/B) ratio of 1.17. Compared to its 3-year average P/B ratio of 1.26 , the current P/B ratio is approximately -6.76% higher. Relative to its 5-year average P/B ratio of 1.70, the current P/B ratio is about -30.74% higher. Lithia Motors Inc (LAD) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -5.90%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -0.78% , the current FCF yield is about -100.00% lower.
1.17
P/B
Median3y
1.26
Median5y
1.70
-0.54
FCF Yield
Median3y
-5.90
Median5y
-0.78
Competitors Valuation Multiple
The average P/S ratio for LAD's competitors is , providing a benchmark for relative valuation. Lithia Motors Inc Corp (LAD) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.93%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LAD decreased by 9.07% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 9.22B to 9.68B.
The secondary factor is the Margin Expansion, contributed -6.61%to the performance.
Overall, the performance of LAD in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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