P/E ratio for Lithia Motors (LAD)
P/E ratio as of February 2023 (TTM): 6.11
According to Lithia Motors's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 6.10718. At the end of 2021 the company had a P/E ratio of 8.25.
P/E ratio history for Lithia Motors from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 8.25 | -45.1% |
| 2020 | 15.0 | 19.74% |
| 2019 | 12.6 | 81.92% |
| 2018 | 6.90 | |
| 2016 | 12.5 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 CarMax
KMX | 21.1 | 245.91% | 🇺🇸 USA |
 Genuine Parts Company
GPC | 20.1 | 229.77% | 🇺🇸 USA |
 Rush Enterprises
RUSHA | 8.58 | 40.41% | 🇺🇸 USA |
 Sonic Automotive
SAH | 5.90 | -3.45% | 🇺🇸 USA |
 Penske Automotive PAG | 7.15 | 17.03% | 🇺🇸 USA |
 Group 1 Automotive GPI | 5.47 | -10.48% | 🇺🇸 USA |
 AutoNation AN | 5.30 | -13.19% | 🇺🇸 USA |
 Asbury Automotive Group ABG | 6.57 | 7.54% | 🇺🇸 USA |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.