LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company was founded in 1998 and is based in Chicago, Illinois.
LKQ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for LKQ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lkq Corp ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 144%. In terms of the factors that were most noteworthy in this DCF analysis for LKQ, they are:
The company has produced more trailing twelve month cash flow than 85.63% of its sector Consumer Cyclical.
Lkq Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 8.22% of tickers in our DCF set.
LKQ's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 8.22% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LKQ, try LCII, MLR, WWE, SLGN, and HIBB.
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CHICAGO, Jan. 12, 2021 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) will release its fourth quarter and full year 2020 financial results on Thursday, February 18, 2021. Conference Call DetailsLKQ will host a conference call and webcast on February 18, 2021 at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) with members of senior management to discuss the Company's results. To access the investor conference call, please dial (833) 236-5754. International access to the call may be obtained by dialing (647) 689-4182. The investor conference call will require you to enter conference ID: 3357956.Webcast and Presentation DetailsThe audio webcast and accompanying slide presentation can be accessed at (www.lkqcorp.com) in the Investor Relations section.A replay of the conference call will...