Lithia Motors Inc (LAD) Stock: How Does it Score on Valuation Metrics?

Lithia Motors Inc (LAD) receives a strong valuation ranking of 93 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. LAD has a better value than 93% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

LAD gets a 93 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LAD!

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Metrics Analysis

LAD has a trailing twelve month Price to Earnings (PE) ratio of 6.2 which places it below the histroical average of roughly 15. LAD is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. LAD's trailing-12-month earnings per share (EPS) of 42.89 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. LAD has a 12 month forward PE to Growth (PEG) ratio of 0.89. Markets are overvaluing LAD in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 42.8899993's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty adequate picture for LAD at its current price due to a fairly valued PEG ratio due to strong growth. The PE and PEG for LAD are around the average of the market resulting in a valuation score of 93. Click Here to get the full Report on Lithia Motors Inc (LAD) stock.