Lithia Motors Stock Alpha and Beta Analysis

LAD Stock  USD 304.51  15.90  4.96%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lithia Motors. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lithia Motors over a specified time horizon. Remember, high Lithia Motors' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Lithia Motors' market risk premium analysis include:
Beta
1.33
Alpha
(0.03)
Risk
2.09
Sharpe Ratio
0.0623
Expected Return
0.13
Please note that although Lithia Motors alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Lithia Motors did 0.03  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Lithia Motors stock's relative risk over its benchmark. Lithia Motors has a beta of 1.33  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lithia Motors will likely underperform. At present, Lithia Motors' Tangible Book Value Per Share is projected to increase significantly based on the last few years of reporting.

Lithia Motors Quarterly Cash And Equivalents

256.2 Million

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Check out Lithia Motors Analysis, Lithia Motors Valuation, Lithia Motors Correlation, Lithia Motors Hype Analysis, Lithia Motors Volatility, Lithia Motors Price History and analyze Lithia Motors Performance.
For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.

Lithia Motors Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lithia Motors market risk premium is the additional return an investor will receive from holding Lithia Motors long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Lithia Motors. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Lithia Motors' performance over market.
α-0.03   β1.33

Lithia Motors expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Lithia Motors' Buy-and-hold return. Our buy-and-hold chart shows how Lithia Motors performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Lithia Motors Market Price Analysis

Market price analysis indicators help investors to evaluate how Lithia Motors stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lithia Motors shares will generate the highest return on investment. By understating and applying Lithia Motors stock market price indicators, traders can identify Lithia Motors position entry and exit signals to maximize returns.

Lithia Motors Return and Market Media

The median price of Lithia Motors for the period between Sat, Nov 15, 2025 and Fri, Feb 13, 2026 is 328.69 with a coefficient of variation of 5.25. The daily time series for the period is distributed with a sample standard deviation of 17.1, arithmetic mean of 325.51, and mean deviation of 13.11. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
 
Lithia Motors dividend paid on 21st of November 2025
11/21/2025
1
Heres Why Lithia Motors is a Strong Value Stock
12/01/2025
2
Why Lithia Motors is a Top Value Stock for the Long-Term
12/18/2025
3
Zacks Research Predicts Increased Earnings for Lithia Motors
01/13/2026
4
Heres What Wall Street Thinks About Lithia Motors, Inc.
01/14/2026
5
Lithia Motors Price Target Cut to 0.00 by Analysts at Barclays
01/21/2026
6
Lithia Motors Inc Shares Gap Down to 322.83 on Jan 23 - GuruFocus
01/23/2026
7
Pinewood.AI Debuts New AI Agent for Automated Dealership Tasks
02/03/2026
8
Lithia Motors, Inc. Accelerates Growth with Canadian Acquisition
02/04/2026
9
Lithia Motors Q4 Earnings Call Highlights
02/11/2026

About Lithia Motors Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Lithia or other stocks. Alpha measures the amount that position in Lithia Motors has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2025 2026 (projected)
Dividend Yield0.0067330.006396
Price To Sales Ratio0.240.21

Lithia Motors Upcoming Company Events

As portrayed in its financial statements, the presentation of Lithia Motors' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lithia Motors' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Lithia Motors' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Lithia Motors. Please utilize our Beneish M Score to check the likelihood of Lithia Motors' management manipulating its earnings.
14th of February 2024
Upcoming Quarterly Report
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17th of April 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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14th of February 2024
Next Fiscal Year End
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30th of September 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
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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:
Lithia Motors technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Lithia Motors technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Lithia Motors trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...