Lithia Motors Valuation
| LMO Stock | EUR 364.00 8.00 2.25% |
At this time, the firm appears to be fairly valued. Lithia Motors secures a last-minute Real Value of €369.48 per share. The latest price of the firm is €364.0. Our model forecasts the value of Lithia Motors from analyzing the firm fundamentals such as Return On Equity of 0.25, current valuation of 12.56 B, and Profit Margin of 0.04 % as well as examining its technical indicators and probability of bankruptcy.
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 364.0 | Real 369.48 | Hype 364.0 | Naive 365.98 |
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 Total Value Analysis
Lithia Motors is now estimated to have takeover price of 12.56 B with market capitalization of 6.64 B, debt of 5.51 B, and cash on hands of 170.3 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Lithia Motors fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
12.56 B | 6.64 B | 5.51 B | 170.3 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 1.19. 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 0.54. The entity recorded earning per share (EPS) of 41.2. The firm last dividend was issued on the 9th of March 2023. Based on the key indicators related to Lithia Motors' liquidity, profitability, solvency, and operating efficiency, Lithia Motors is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.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 188.13 percent. This implies that the Company is making €1.88 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
Lithia Motors maintains a total of 27.34 Million outstanding shares. 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. Also note that almost twenty-seven thousand three hundred thirty-eight invesors are currently shorting Lithia Motors expressing very little confidence in its future performance.Lithia Motors Profitability Analysis
The company reported the revenue of 28.23 B. Net Income was 1.25 B with profit before overhead, payroll, taxes, and interest of 5.15 B.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.Lithia Motors, Inc. operates as an automotive retailer in the United States. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon. LITHIA MOTORS operates under Auto Truck Dealerships classification in Germany and is traded on Frankfurt Stock Exchange. It employs 14538 people.
8 Steps to conduct Lithia Motors' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lithia Motors' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Lithia Motors' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lithia Motors' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lithia Motors' revenue streams: Identify Lithia Motors' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lithia Motors' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lithia Motors' growth potential: Evaluate Lithia Motors' management, business model, and growth potential.
- Determine Lithia Motors' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Lithia Motors' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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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