Lithia Motors Valuation
| LAD Stock | USD 326.55 4.50 1.36% |
At this time, the firm appears to be undervalued. Lithia Motors secures a last-minute Real Value of $340.41 per share. The latest price of the firm is $326.55. Our model forecasts the value of Lithia Motors from analyzing the firm fundamentals such as Profit Margin of 0.02 %, current valuation of 22.33 B, and Return On Equity of 0.14 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lithia Motors' valuation include:
Undervalued
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 326.55 | Real 340.41 | Target 396.71 | Hype 325.67 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lithia Motors' intrinsic value based on its ongoing forecasts of Lithia Motors' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lithia Motors' closest peers. If more than one evaluation category is relevant for Lithia Motors we suggest using both methods to arrive at a better estimate.
Lithia Motors Cash |
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Lithia Revenue by Product
Lithia Motors Total Value Analysis
Lithia Motors is now forecasted to have company total value of 22.33 B with market capitalization of 8.03 B, debt of 13.86 B, and cash on hands of 246.7 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Lithia Motors fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
22.33 B | 8.03 B | 13.86 B | 246.7 M |
Lithia Motors Investor Information
About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.19. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lithia Motors has Price/Earnings To Growth (PEG) ratio of 0.64. The entity recorded earning per share (EPS) of 34.59. The firm last dividend was issued on the 7th of November 2025. Lithia Motors had 1:10 split on the 16th of January 2018. Based on the key indicators related to Lithia Motors' liquidity, profitability, solvency, and operating efficiency, Lithia Motors may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.027 | 0.0392 |
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| Operating Income | 1.9 B | 1.8 B |
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Lithia Motors Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lithia Motors has an asset utilization ratio of 156.47 percent. This indicates that the Company is making $1.56 for each dollar of assets. An increasing asset utilization means that Lithia Motors is more efficient with each dollar of assets it utilizes for everyday operations.Lithia Motors Profitability Analysis
Based on Lithia Motors' profitability indicators, Lithia Motors' profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Lithia Motors' ability to earn profits and add value for shareholders.Net Income | First Reported 1995-03-31 | Previous Quarter 217.1 M | Current Value 217.1 M | Quarterly Volatility 93.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.19 | 0.18 |
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| Net Profit Margin | 0.0134 | 0.0199 |
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| Operating Profit Margin | 0.027 | 0.0392 |
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| Pretax Profit Margin | 0.0209 | 0.0268 |
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| Return On Assets | 0.0294 | 0.0312 |
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| Return On Equity | 0.25 | 0.14 |
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For Lithia Motors profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lithia Motors to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lithia Motors utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lithia Motors's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lithia Motors over time as well as its relative position and ranking within its peers.
Lithia Motors Earnings per Share Projection vs Actual
The next projected EPS of Lithia Motors is estimated to be 8.8433 with future projections ranging from a low of 8.22 to a high of 9.4. Lithia Motors' most recent 12-month trailing earnings per share (EPS TTM) is at 34.59. Please be aware that the consensus of earnings estimates for Lithia Motors is based on EPS before non-recurring items and includes expenses related to employee stock options.Lithia Motors Earnings Estimation Breakdown
The calculation of Lithia Motors' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Lithia Motors is estimated to be 8.8433 with the future projection ranging from a low of 8.22 to a high of 9.4. Please be aware that this consensus of annual earnings estimates for Lithia Motors is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
8.22 Lowest | Expected EPS | 9.40 Highest |
Lithia Motors Earnings Projection Consensus
Suppose the current estimates of Lithia Motors' value are higher than the current market price of the Lithia Motors stock. In this case, investors may conclude that Lithia Motors is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Lithia Motors' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 14 | 88.47% | 0.0 | 8.8433 | 34.59 |
Lithia Motors Ownership Allocation
The majority of Lithia Motors outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Lithia Motors to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Lithia Motors. Please pay attention to any change in the institutional holdings of Lithia Motors as this could imply that something significant has changed or is about to change at the company.Lithia Motors Profitability Analysis
The company reported the last year's revenue of 36.19 B. Total Income to common stockholders was 821.6 M with profit before taxes, overhead, and interest of 5.8 B.Lithia Motors Past Distributions to stockholders
| 21st of November 2025 | ||
| 22nd of August 2025 | ||
| 23rd of May 2025 | ||
| 21st of March 2025 | ||
| 15th of November 2024 | ||
| 23rd of August 2024 | ||
| 24th of May 2024 | ||
| 22nd of March 2024 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lithia Motors' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lithia Motors and how it compares across the competition.
About Lithia Motors Valuation
The stock valuation mechanism determines Lithia Motors' current worth on a weekly basis. Our valuation model uses a comparative analysis of Lithia Motors. We calculate exposure to Lithia Motors's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Lithia Motors's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.4 B | 6.7 B | |
| Pretax Profit Margin | 0.03 | 0.02 | |
| Operating Profit Margin | 0.04 | 0.03 | |
| Net Profit Margin | 0.02 | 0.01 | |
| Gross Profit Margin | 0.18 | 0.19 |
Lithia Motors Quarterly Retained Earnings |
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A single share of Lithia Motors represents a small ownership stake in the entity. As a stockholder of Lithia, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Lithia Motors Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about 68.2 M, whereas Dividend Yield is forecasted to decline to 0.01. . At present, Lithia Motors' Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.08, whereas Price Earnings To Growth Ratio is projected to grow to (0.56).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 65 M | 68.2 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.08 | 0.08 | |
| Dividend Paid And Capex Coverage Ratio | 0.94 | 0.69 |
There are various types of dividends Lithia Motors can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lithia shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lithia Motors directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lithia pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lithia Motors by the value of the dividends paid out.
Lithia Motors Growth Indicators
Investing in growth stocks can be very risky. If the company such as Lithia Motors does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 27.1 M | |
| Quarterly Earnings Growth Y O Y | 0.114 | |
| Forward Price Earnings | 8.5911 |
Lithia Motors Current Valuation Indicators
Valuation refers to the process of determining the present value of Lithia Motors and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lithia we look at many different elements of the entity such as Lithia's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lithia Motors, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lithia Motors' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lithia Motors' worth.Complementary Tools for Lithia Stock analysis
When running Lithia Motors' price analysis, check to measure Lithia Motors' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lithia Motors is operating at the current time. Most of Lithia Motors' value examination focuses on studying past and present price action to predict the probability of Lithia Motors' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lithia Motors' price. Additionally, you may evaluate how the addition of Lithia Motors to your portfolios can decrease your overall portfolio volatility.
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