LAD
Lithia Motors Inc
Price:  
350.09 
USD
Volume:  
185,993
United States | Specialty Retail

LAD DCF Valuation - Growth Exit 5Y

10.8 %
Upside

What is the DCF valuation of LAD?

The Discounted Cash Flow (DCF) valuation of Lithia Motors Inc (LAD) is 387.87 USD. With the latest stock price at 350.09 USD, the upside of Lithia Motors Inc based on DCF is 10.8%.

Is LAD a buy or a sell?

Based on the latest price of 350.09 USD and our DCF valuation, Lithia Motors Inc (LAD) is a buy. Buying LAD stocks now will result in a potential gain of 10.8%.

Range Selected
WACC / Discount Rate5.5% - 7.3%6.4%
Long-term Growth Rate 0.5% - 1.5%1.0%
Fair Price216.96 - 677.11387.87
Upside-38.0% - 93.4%10.8%
350.09 USD
Stock Price
387.87 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

LAD DCF Valuation: Revenue & Expenses Forecast

(USD in millions)Projections
12-202412-202512-202612-202712-202812-2029
Revenue36,23738,86541,00142,03244,13446,233
% Growth
17%7%5%3%5%5%
Cost of goods sold(30,612)(32,832)(34,636)(35,507)(37,283)(39,056)
% of Revenue84%84%84%84%84%84%
Selling, G&A expenses(3,739)(4,010)(4,231)(4,337)(4,554)(4,771)
% of Revenue10%10%10%10%10%10%
Research & Development000000
% of Revenue0%0%0%0%0%0%
Net interest & other expenses(808)(866)(914)(937)(984)(1,031)
% of Revenue2%2%2%2%2%2%
Tax expense(257)(313)(330)(338)(355)(372)
Tax rate24%27%27%27%27%27%
Net profit8228448909129581,004
% Margin2%2%2%2%2%2%