LKQ Valuation
| LKQ Stock | USD 43.64 0.72 1.68% |
At this time, the firm appears to be undervalued. LKQ Corporation secures a last-minute Real Value of $56.61 per share. The latest price of the firm is $43.64. Our model forecasts the value of LKQ Corporation from inspecting the firm fundamentals such as profit margin of 0.06 %, and Return On Equity of 0.14 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point future time, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting LKQ's valuation include:
Price Book 2.1291 | Enterprise Value 16.9 B | Enterprise Value Ebitda 10.4465 | Price Sales 0.9469 | Forward PE 12.21 |
Undervalued
Today
Please note that LKQ's price fluctuation is very steady at this time. Calculation of the real value of LKQ Corporation is based on 3 months time horizon. Increasing LKQ's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for LKQ Corporation is useful when determining the fair value of the LKQ stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of LKQ. Since LKQ is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LKQ Stock. However, LKQ's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 43.64 | Real 56.61 | Target 67.64 | Hype 43.6 | Naive 40.62 |
The real value of LKQ Stock, also known as its intrinsic value, is the underlying worth of LKQ Corporation Company, which is reflected in its stock price. It is based on LKQ's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of LKQ's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence LKQ's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of LKQ Corporation helps investors to forecast how LKQ stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of LKQ more accurately as focusing exclusively on LKQ's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use LKQ's intrinsic value based on its ongoing forecasts of LKQ's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against LKQ's closest peers. When choosing an evaluation method for LKQ Corporation, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
LKQ Investments |
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LKQ Valuation Trend
Knowing LKQ's actual value is paramount for traders to make sound investment determinations. LKQ's real value is not only important for the investor to make better decisions but also for a more accurate overall view of LKQ's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both LKQ's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
LKQ Market Cap
LKQ Corporation is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 47.83 Billion. LKQ totals roughly 11.64 Billion in market capitalization claiming about 24% of stocks in Consumer Discretionary industry.LKQ Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining LKQ's current stock value. Our valuation model uses many indicators to compare LKQ value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across LKQ competition to find correlations between indicators driving LKQ's intrinsic value. More Info.LKQ Corporation is rated below average in price to earning category among related companies. It is rated fourth overall in price to book category among related companies fabricating about 0.17 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for LKQ Corporation is roughly 5.95 . As of 04/29/2024, Price To Book Ratio is likely to drop to 1.96. Comparative valuation analysis is a catch-all model that can be used if you cannot value LKQ by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for LKQ's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LKQ's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates LKQ's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in LKQ and how it compares across the competition.
About LKQ Valuation
The stock valuation mechanism determines the current worth of LKQ Corporation on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of LKQ Corporation. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LKQ Corporation based exclusively on its fundamental and basic technical indicators. By analyzing LKQ's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of LKQ's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of LKQ. We calculate exposure to LKQ's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to LKQ's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.6 B | 5.9 B | |
| Pretax Profit Margin | 0.09 | 0.06 | |
| Operating Profit Margin | 0.1 | 0.07 | |
| Net Profit Margin | 0.07 | 0.04 | |
| Gross Profit Margin | 0.40 | 0.47 |
8 Steps to conduct LKQ's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates LKQ's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct LKQ's valuation analysis, follow these 8 steps:- Gather financial information: Obtain LKQ's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine LKQ's revenue streams: Identify LKQ's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research LKQ's industry and market trends, including the size of the market, growth rate, and competition.
- Establish LKQ's growth potential: Evaluate LKQ's management, business model, and growth potential.
- Determine LKQ's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate LKQ's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of LKQ represents a small ownership stake in the entity. As a stockholder of LKQ, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
LKQ Dividends Analysis For Valuation
As of 04/29/2024, Dividends Paid is likely to grow to about 317.1 M, while Dividend Yield is likely to drop 0.01. . At this time, LKQ's Retained Earnings are relatively stable compared to the past year. As of 04/29/2024, Retained Earnings Total Equity is likely to grow to about 8 B, though Price Earnings To Growth Ratio is likely to grow to (0.86).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 302 M | 317.1 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.32 | 0.17 | |
| Dividend Paid And Capex Coverage Ratio | (24.21) | (23.00) |
There are various types of dividends LKQ can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of LKQ shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from LKQ Corporation directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When LKQ pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of LKQ by the value of the dividends paid out.
LKQ Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as LKQ does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 268.3 M | |
| Quarterly Earnings Growth Y O Y | -0.416 | |
| Forward Price Earnings | 12.21 |
LKQ Current Valuation Indicators
Valuation refers to the process of determining the present value of LKQ Corporation and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value LKQ we look at many different elements of the entity such as LKQ's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. LKQ's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final LKQ's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as LKQ, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use LKQ's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes LKQ's worth.When determining whether LKQ Corporation is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if LKQ Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Lkq Corporation Stock. Highlighted below are key reports to facilitate an investment decision about Lkq Corporation Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LKQ Corporation. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Complementary Tools for LKQ Stock analysis
When running LKQ's price analysis, check to measure LKQ's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LKQ is operating at the current time. Most of LKQ's value examination focuses on studying past and present price action to predict the probability of LKQ's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LKQ's price. Additionally, you may evaluate how the addition of LKQ to your portfolios can decrease your overall portfolio volatility.
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Is LKQ's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LKQ. If investors know LKQ will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LKQ listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.42) | Dividend Share 1.15 | Earnings Share 3.1 | Revenue Per Share 53.154 | Quarterly Revenue Growth 0.106 |
The market value of LKQ Corporation is measured differently than its book value, which is the value of LKQ that is recorded on the company's balance sheet. Investors also form their own opinion of LKQ's value that differs from its market value or its book value, called intrinsic value, which is LKQ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LKQ's market value can be influenced by many factors that don't directly affect LKQ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LKQ's value and its price as these two are different measures arrived at by different means. Investors typically determine if LKQ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LKQ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.