InvestorsObserver gives Lithia Motors Inc (LAD) a strong valuation score of 71 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. LAD currently holds a better value than 71% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
LAD's 12-month-forward PE to Growth (PEG) ratio of 1.47 is considered a poor value as the market is overvaluing LAD in relation to the company's projected earnings growth due. LAD's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
What do the Fundamentals Predict for Lithia Motors Inc (LAD) Stock?
LAD gets a 71 Valuation Rank today. Find out what this means to you and get the rest of the rankings on LAD!