Lithia Motors Valuation
| LAD Stock | USD 390.86 8.36 2.19% |
At this time, the firm appears to be fairly valued. Lithia Motors secures a last-minute Real Value of $389.95 per share. The latest price of the firm is $390.86. Our model forecasts the value of Lithia Motors from analyzing the firm fundamentals such as Profit Margin of 0.02 %, current valuation of 24.1 B, and Return On Equity of 0.13 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lithia Motors' valuation include:
Price Book 1.5764 | Enterprise Value 24.1 B | Enterprise Value Ebitda 12.3368 | Price Sales 0.3001 | Forward PE 11.274 |
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 390.86 | Real 389.95 | Target 355.83 | Hype 394.46 | Naive 366.43 |
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 Valuation Trend
Comparing Lithia Motors' enterprise value against its market capitalization is a good way to estimate the value of Lithia Motors uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Lithia Revenue by Product
Lithia Motors Total Value Analysis
Lithia Motors is now forecasted to have company total value of 24.1 B with market capitalization of 10.41 B, debt of 11.33 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 |
24.1 B | 10.41 B | 11.33 B | 246.7 M |
Lithia Motors Investor Information
About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.58. 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 1.33. The entity recorded earning per share (EPS) of 29.28. The firm last dividend was issued on the 8th of November 2024. 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 is doing better financially today then in previous quarter. It has a moderate risk of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0273 | 0.0545 |
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| Operating Income | 1.8 B | 1.7 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 158.12 percent. This indicates that the Company is making $1.58 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 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. Please note that on September 20, 2020, Representative Josh Gottheimer of US Congress acquired under $15k worth of Lithia Motors's common stock.Lithia Motors Profitability Analysis
The company reported the last year's revenue of 31.04 B. Total Income to common stockholders was 1 B with profit before taxes, overhead, and interest of 5.15 B.Lithia Motors Past Distributions to stockholders
| 15th of November 2024 | ||
| 23rd of August 2024 | ||
| 24th of May 2024 | ||
| 22nd of March 2024 | ||
| 17th of November 2023 | ||
| 25th of August 2023 | ||
| 26th of May 2023 | ||
| 12th of May 2023 | ||
| 24th of March 2023 |
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 | 5 B | 5.3 B | |
| Pretax Profit Margin | 0.04 | 0.05 | |
| Operating Profit Margin | 0.05 | 0.03 | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.17 | 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 55.4 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 0.12, whereas Price Earnings To Growth Ratio is projected to grow to (0.48).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 52.8 M | 55.4 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.05 | 0.05 | |
| Dividend Paid And Capex Coverage Ratio | (1.67) | (1.59) |
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 | 27.6 M | |
| Quarterly Earnings Growth Y O Y | -0.175 | |
| Forward Price Earnings | 11.274 |
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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