Lithia Motors operates as an automotive franchisee and retailer of new and used vehicles in the United States. The company was founded in 1946 and is based in Medford, Oregon.
LAD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Lithia Motors Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lithia Motors Inc ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Lithia Motors Inc ended up being:
The company's compound free cash flow growth rate over the past 4.24 years comes in at 1.05%; that's greater than 90.87% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than 79.92% of its sector Consumer Cyclical.
Lithia Motors Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 7.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MHO, BGFV, SPWH, SIG, and FRGI can be thought of as valuation peers to LAD, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Lithia Motors & Driveway (NYSE: LAD) announced its fourth quarter and full year 2020 earnings will be released before the market opens on Wednesday, February 3, 2021. A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time.
Twitter, meanwhile, slumped nearly 3% and undercut its 21-day exponential moving average. While the general uptrend in Twitter remains intact, the stunning Democratic victory in Georgia's Senate races may open the door for potential new legislation that changes current protections for the social media giant from content distributed on its platform. A 74 Composite Rating for Twitter, according to IBD Stock Checkup, is mediocre on a scale of 1 (mushy) to 99 (magnificent).
In this article, we presented billionaire David Abrams’ top 10 stock picks. Click to skip ahead to see Billionaire David Abrams’ Top 5 Stock Picks. The value investing guru David Abrams is one of the most successful hedge fund managers over the last two decades, thanks to his strategy of buying undervalued stocks and holding […]