LKQ Valuation

LKQ Corp

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31.960

+0.8(2.567%)1D

LKQ Relative Valuation

LKQ'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, LKQ is overvalued; if below, it's undervalued.

Historical Valuation

LKQ Corp (LKQ) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.83 is considered Undervalued compared with the five-year average of 12.49. The fair price of LKQ Corp (LKQ) is between 36.71 to 45.66 according to relative valuation methord. Compared to the current price of 31.96 USD , LKQ Corp is Undervalued By 12.94%.

Relative Value

Fair Zone

36.71-45.66

Current Price：31.96

12.94%

Undervalued

9.83

Trailing

Forward

8.45

EV/EBITDA

LKQ Corp. (LKQ) has a current EV/EBITDA of 8.45. The 5-year average EV/EBITDA is 9.85. The thresholds are as follows: Strongly Undervalued below 8.04, Undervalued between 8.04 and 8.95, Fairly Valued between 10.76 and 8.95, Overvalued between 10.76 and 11.67, and Strongly Overvalued above 11.67. The current Forward EV/EBITDA of 8.45 falls within the Undervalued range.

10.91

EV/EBIT

LKQ Corp. (LKQ) has a current EV/EBIT of 10.91. The 5-year average EV/EBIT is 11.81. The thresholds are as follows: Strongly Undervalued below 9.85, Undervalued between 9.85 and 10.83, Fairly Valued between 12.79 and 10.83, Overvalued between 12.79 and 13.77, and Strongly Overvalued above 13.77. The current Forward EV/EBIT of 10.91 falls within the Historic Trend Line -Fairly Valued range.

31.96

LKQ Corp. (LKQ) has a current PS of 31.96. The 5-year average PS is 0.97. The thresholds are as follows: Strongly Undervalued below -0.84, Undervalued between -0.84 and 0.07, Fairly Valued between 1.88 and 0.07, Overvalued between 1.88 and 2.78, and Strongly Overvalued above 2.78. The current Forward PS of 31.96 falls within the Strongly Overvalued range.

7.24

P/OCF

LKQ Corp. (LKQ) has a current P/OCF of 7.24. The 5-year average P/OCF is 10.79. The thresholds are as follows: Strongly Undervalued below 5.82, Undervalued between 5.82 and 8.30, Fairly Valued between 13.27 and 8.30, Overvalued between 13.27 and 15.75, and Strongly Overvalued above 15.75. The current Forward P/OCF of 7.24 falls within the Undervalued range.

10.84

P/FCF

LKQ Corp. (LKQ) has a current P/FCF of 10.84. The 5-year average P/FCF is 14.99. The thresholds are as follows: Strongly Undervalued below 6.47, Undervalued between 6.47 and 10.73, Fairly Valued between 19.25 and 10.73, Overvalued between 19.25 and 23.51, and Strongly Overvalued above 23.51. The current Forward P/FCF of 10.84 falls within the Historic Trend Line -Fairly Valued range.

LKQ Corp (LKQ) has a current Price-to-Book (P/B) ratio of 1.25. Compared to its 3-year average P/B ratio of 2.02 , the current P/B ratio is approximately -38.04% higher. Relative to its 5-year average P/B ratio of 2.20, the current P/B ratio is about -43.19% higher. LKQ Corp (LKQ) has a Forward Free Cash Flow (FCF) yield of approximately 8.81%. Compared to its 3-year average FCF yield of 7.20%, the current FCF yield is approximately 22.36% lower. Relative to its 5-year average FCF yield of 7.68% , the current FCF yield is about 14.74% lower.

1.25

P/B

Median3y

2.02

Median5y

2.20

8.81

FCF Yield

Median3y

7.20

Median5y

7.68

Competitors Valuation Multiple

The average P/S ratio for LKQ's competitors is 48.84, providing a benchmark for relative valuation. LKQ Corp Corp (LKQ) exhibits a P/S ratio of 31.96, which is -34.56% above the industry average. Given its robust revenue growth of 1.33%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Goodyear Tire & Rubber Co

Standard Motor Products Inc

37.13

24.94%

816.40M

Performance Decomposition

Market capitalization of LKQ decreased by 18.08% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.45B to 3.50B.

The secondary factor is the Margin Expansion, contributed -6.43%to the performance.

Overall, the performance of LKQ in the past 1 year is driven by Revenue Growth. Which is more sustainable.

1.33%

3.45B → 3.50B

Revenue Growth

-6.43%

5.44 → 5.09

Margin Expansion

-12.98%

13.65 → 11.88

P/E Change

-18.08%