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%.
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 Rate | 5.5% - 7.3% | 6.4% |
Long-term Growth Rate | 0.5% - 1.5% | 1.0% |
Fair Price | 216.96 - 677.11 | 387.87 |
Upside | -38.0% - 93.4% | 10.8% |
(USD in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 36,237 | 38,865 | 41,001 | 42,032 | 44,134 | 46,233 |
% Growth | 17% | 7% | 5% | 3% | 5% | 5% |
Cost of goods sold | (30,612) | (32,832) | (34,636) | (35,507) | (37,283) | (39,056) |
% of Revenue | 84% | 84% | 84% | 84% | 84% | 84% |
Selling, G&A expenses | (3,739) | (4,010) | (4,231) | (4,337) | (4,554) | (4,771) |
% of Revenue | 10% | 10% | 10% | 10% | 10% | 10% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (808) | (866) | (914) | (937) | (984) | (1,031) |
% of Revenue | 2% | 2% | 2% | 2% | 2% | 2% |
Tax expense | (257) | (313) | (330) | (338) | (355) | (372) |
Tax rate | 24% | 27% | 27% | 27% | 27% | 27% |
Net profit | 822 | 844 | 890 | 912 | 958 | 1,004 |
% Margin | 2% | 2% | 2% | 2% | 2% | 2% |