Lithia Motors, Inc. (LAD) Valuation — DCF, Graham & Comparables

Lithia Motors, Inc. (LAD) — Price $299.72 (closing price, October 30, 2026) — Consumer Cyclical — Auto - Dealerships — NYSE

Latest reported results:

Valuation dashboard for Lithia Motors, Inc. (LAD) with P/E 8.62, P/B 1.00, EV/EBITDA 15.75 and dividend yield 0.79%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Cyclical companies.

Lithia Motors, Inc. operates as a prominent automotive retail enterprise throughout the United States. Its business is strategically divided into three key segments: Domestic, Import, and Luxury vehicle sales. The company's comprehensive offerings encompass the sale of both brand-new and pre-owned automobiles, alongside a full spectrum of vehicle financing solutions.

Analysis Summary

Lithia Motors, Inc. reported revenue of $37.63B in the most recent fiscal year, growing at a 5-year CAGR of 23.4%. Net income reached $819.6M, with a 11.7% 5-year CAGR.

Trailing-twelve-month margins: gross margin 11.0%, operating margin 2.4%, net margin 2.1%.

At $299.72 (closing price, October 30, 2026), LAD trades at a P/E of 8.62 and an ROE of 12.12%. Market capitalisation stands at $6.5B.

Balance sheet quality for LAD: current ratio of 1.2. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio8.62
Price / Book1.00
EV / EBITDA15.75
Dividend Yield0.79%

Valuation Models

DCF Fair Value$364.21
vs Current Price+21.5%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
LADLithia Motors, Inc.$6.5B8.621.0012.1%
CVNACarvana Co.$74.9B29.1611.3143.9%
PAGPenske Automotive Group, Inc.$13.9B15.472.3416.4%
ANAutoNation, Inc.$5.9B8.632.5133.2%
KMXCarMax, Inc.$7.9B26.091.254.8%
GPIGroup 1 Automotive, Inc.$3.1B8.271.0213.0%
ABGAsbury Automotive Group, Inc.$3.6B7.9015.9%

Price

Price$299.72 (closing price, October 30, 2026)
Market Cap$6.5B
ExchangeNYSE
CountryUS

Profitability

Return on Equity12.12%
Return on Invested Capital2.65%
Return on Assets2.94%
Gross Margin11.03%
Operating Margin2.36%
Net Margin2.06%

Related companies: CVNA · PAG · AN · KMX · GPI · ABG

Explore sector: Consumer Cyclical · Auto - Dealerships

More sections of LAD: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks