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Lithia Motors (STU:LMO) Cyclically Adjusted PB Ratio : 2.71 (As of Sep. 22, 2024)


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What is Lithia Motors Cyclically Adjusted PB Ratio?

As of today (2024-09-22), Lithia Motors's current share price is €266.00. Lithia Motors's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2024 was €98.23. Lithia Motors's Cyclically Adjusted PB Ratio for today is 2.71.

The historical rank and industry rank for Lithia Motors's Cyclically Adjusted PB Ratio or its related term are showing as below:

STU:LMO' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 2.07   Med: 4.31   Max: 10.49
Current: 2.83

During the past years, Lithia Motors's highest Cyclically Adjusted PB Ratio was 10.49. The lowest was 2.07. And the median was 4.31.

STU:LMO's Cyclically Adjusted PB Ratio is ranked worse than
75.8% of 810 companies
in the Vehicles & Parts industry
Industry Median: 1.27 vs STU:LMO: 2.83

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Lithia Motors's adjusted book value per share data for the three months ended in Jun. 2024 was €220.738. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €98.23 for the trailing ten years ended in Jun. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Lithia Motors Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Lithia Motors's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lithia Motors Cyclically Adjusted PB Ratio Chart

Lithia Motors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.73 7.75 5.62 2.84 3.52

Lithia Motors Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.65 3.33 3.52 3.00 2.38

Competitive Comparison of Lithia Motors's Cyclically Adjusted PB Ratio

For the Auto & Truck Dealerships subindustry, Lithia Motors's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lithia Motors's Cyclically Adjusted PB Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Lithia Motors's Cyclically Adjusted PB Ratio falls into.



Lithia Motors Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Lithia Motors's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=266.00/98.23
=2.71

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lithia Motors's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2024 is calculated as:

For example, Lithia Motors's adjusted Book Value per Share data for the three months ended in Jun. 2024 was:

Adj_Book=Book Value per Share/CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=220.738/132.5538*132.5538
=220.738

Current CPI (Jun. 2024) = 132.5538.

Lithia Motors Quarterly Data

Book Value per Share CPI Adj_Book
201409 18.544 100.428 24.476
201412 20.809 99.070 27.842
201503 24.827 99.621 33.034
201506 25.483 100.684 33.549
201509 26.682 100.392 35.230
201512 28.997 99.792 38.517
201603 28.405 100.470 37.476
201606 28.896 101.688 37.667
201609 30.663 101.861 39.902
201612 34.339 101.863 44.685
201703 35.320 102.862 45.515
201706 35.140 103.349 45.070
201709 34.660 104.136 44.119
201712 36.659 104.011 46.719
201803 36.585 105.290 46.059
201806 40.671 106.317 50.708
201809 43.192 106.507 53.755
201812 45.754 105.998 57.217
201903 47.909 107.251 59.212
201906 48.625 108.070 59.642
201909 53.196 108.329 65.092
201912 56.937 108.420 69.611
202003 57.813 108.902 70.369
202006 59.629 108.767 72.669
202009 63.094 109.815 76.159
202012 82.557 109.897 99.577
202103 88.661 111.754 105.162
202106 116.211 114.631 134.380
202109 127.435 115.734 145.955
202112 138.792 117.630 156.401
202203 151.469 121.301 165.520
202206 161.401 125.017 171.132
202209 183.038 125.227 193.748
202212 180.024 125.222 190.565
202303 184.670 127.348 192.219
202306 193.179 128.729 198.919
202309 203.573 129.860 207.797
202312 207.962 129.419 212.999
202403 212.483 131.776 213.737
202406 220.738 132.554 220.738

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Lithia Motors  (STU:LMO) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Lithia Motors Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Lithia Motors's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Lithia Motors Business Description

Traded in Other Exchanges
Address
150 N. Bartlett Street, Medford, OR, USA, 97501
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.

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