P/E ratio for Lithia Motors (LAD)
P/E ratio as of September 2023 (TTM): 7.13
According to Lithia Motors's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 7.12676. 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 | 26.9 | 277.31% | 🇺🇸 USA |
 Genuine Parts Company
GPC | 16.6 | 133.05% | 🇺🇸 USA |
 Rush Enterprises
RUSHA | 8.87 | 24.51% | 🇺🇸 USA |
 Sonic Automotive
SAH | -51.4 | -821.82% | 🇺🇸 USA |
 Penske Automotive PAG | 9.19 | 29.02% | 🇺🇸 USA |
 Group 1 Automotive GPI | 5.59 | -21.61% | 🇺🇸 USA |
 AutoNation AN | 6.21 | -12.82% | 🇺🇸 USA |
 Asbury Automotive Group ABG | 5.14 | -27.82% | 🇺🇸 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.