Lithia Motors Stock Current Valuation
| LAD Stock | USD 346.17 1.84 0.53% |
Valuation analysis of Lithia Motors helps investors to measure Lithia Motors' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Lithia Motors' Enterprise Value Multiple is projected to increase based on the last few years of reporting. Fundamental drivers impacting Lithia Motors' valuation include:
Fairly Valued
Today
Please note that Lithia Motors' price fluctuation is very steady at this time. Calculation of the real value of Lithia Motors is based on 3 months time horizon. Increasing Lithia Motors' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Lithia stock is determined by what a typical buyer is willing to pay for full or partial control of Lithia Motors. Since Lithia Motors is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lithia Stock. However, Lithia Motors' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 346.17 | Real 358.82 | Target 397.56 | Hype 343.6 | Naive 324.0 |
The real value of Lithia Stock, also known as its intrinsic value, is the underlying worth of Lithia Motors Company, which is reflected in its stock price. It is based on Lithia Motors' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Lithia Motors' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Lithia Motors helps investors to forecast how Lithia stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lithia Motors more accurately as focusing exclusively on Lithia Motors' fundamentals will not take into account other important factors: Lithia Motors Company Current Valuation Analysis
Lithia Motors' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Lithia Motors Current Valuation | 22.54 B |
Most of Lithia Motors' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Lithia Motors is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Lithia Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Lithia Motors is extremely important. It helps to project a fair market value of Lithia Stock properly, considering its historical fundamentals such as Current Valuation. Since Lithia Motors' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Lithia Motors' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Lithia Motors' interrelated accounts and indicators.
Click cells to compare fundamentals
Lithia Current Valuation Historical Pattern
Today, most investors in Lithia Motors Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Lithia Motors' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Lithia Motors current valuation as a starting point in their analysis.
Lithia Motors Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Lithia Motors has a Current Valuation of 22.54 B. This is 24.5% higher than that of the Specialty Retail sector and 168.53% higher than that of the Consumer Discretionary industry. The current valuation for all United States stocks is 35.56% lower than that of the firm.
Lithia Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Lithia Motors' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Lithia Motors could also be used in its relative valuation, which is a method of valuing Lithia Motors by comparing valuation metrics of similar companies.Lithia Motors is currently under evaluation in current valuation category among its peers.
Lithia Motors ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Lithia Motors' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Lithia Motors' managers, analysts, and investors.Environmental | Governance | Social |
Lithia Fundamentals
| Return On Equity | 0.13 | ||||
| Return On Asset | 0.0464 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.05 % | ||||
| Current Valuation | 22.54 B | ||||
| Shares Outstanding | 26.29 M | ||||
| Shares Owned By Insiders | 1.92 % | ||||
| Shares Owned By Institutions | 98.10 % | ||||
| Number Of Shares Shorted | 1.88 M | ||||
| Price To Earning | 9.87 X | ||||
| Price To Book | 1.36 X | ||||
| Price To Sales | 0.25 X | ||||
| Revenue | 36.24 B | ||||
| Gross Profit | 5.58 B | ||||
| EBITDA | 512.1 M | ||||
| Net Income | 821.6 M | ||||
| Cash And Equivalents | 246.7 M | ||||
| Cash Per Share | 8.44 X | ||||
| Total Debt | 7.74 B | ||||
| Debt To Equity | 1.37 % | ||||
| Current Ratio | 1.66 X | ||||
| Book Value Per Share | 252.10 X | ||||
| Cash Flow From Operations | 2.02 B | ||||
| Short Ratio | 4.41 X | ||||
| Earnings Per Share | 29.59 X | ||||
| Price To Earnings To Growth | 1.14 X | ||||
| Target Price | 427.5 | ||||
| Number Of Employees | 30 K | ||||
| Beta | 1.67 | ||||
| Market Capitalization | 9.1 B | ||||
| Total Asset | 23.13 B | ||||
| Retained Earnings | 5.76 B | ||||
| Working Capital | 1.22 B | ||||
| Current Asset | 1.88 B | ||||
| Current Liabilities | 1.59 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 0.79 % | ||||
| Net Asset | 23.13 B | ||||
| Last Dividend Paid | 2.12 |
About Lithia Motors Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Lithia Motors's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lithia Motors using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lithia Motors based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Lithia Motors is a strong investment it is important to analyze Lithia Motors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lithia Motors' future performance. For an informed investment choice regarding Lithia Stock, refer to the following important reports:Check out Lithia Motors Piotroski F Score and Lithia Motors Altman Z Score analysis. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lithia Motors. If investors know Lithia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lithia Motors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.051 | Dividend Share 2.12 | Earnings Share 29.59 | Revenue Per Share | Quarterly Revenue Growth 0.195 |
The market value of Lithia Motors is measured differently than its book value, which is the value of Lithia that is recorded on the company's balance sheet. Investors also form their own opinion of Lithia Motors' value that differs from its market value or its book value, called intrinsic value, which is Lithia Motors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lithia Motors' market value can be influenced by many factors that don't directly affect Lithia Motors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lithia Motors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lithia Motors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lithia Motors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.