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Lithia MotorsLAD -4.84%90 Debt-to-EBITDA is 6.15 as of Jun. 2026, which is 1% above its 10-year median of 6.11. GuruFocus rates LAD with a GF Score™ of 90/100 and a GF Value™ of $380.67 (Fairly Valued). The stock has 13 warning signs investors should review. Among 1,096 Vehicles & Parts companies, Lithia Motors ranks worse than 86.22% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Lithia Motors's Debt-to-EBITDA or its related term are showing as below:
LAD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.79 Med: 6.11 Max: 7.5
Current: 7.5
During the past 13 years, the highest Debt-to-EBITDA Ratio of Lithia Motors was 7.50. The lowest was 2.79. And the median was 6.11.
LAD's Debt-to-EBITDA is ranked worse than 86.22% of 1096
companies
in the Vehicles & Parts industry
Industry Median: 2.26
vs LAD: 7.50
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Lithia Motors Debt-to-EBITDA Related Terms
Lithia Motors Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Lithia Motors's Debt-to-EBITDA 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.
For the Auto & Truck Dealerships subindustry, Lithia Motors's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Lithia Motors (LAD) has a Debt-to-EBITDA of 6.15 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lithia Motors. This is near median its historical median of 6.11. Over the past decade, Lithia Motors' Debt-to-EBITDA has ranged from 2.79 to 7.50. According to the industry distribution chart, Lithia Motors ranks #945 out of 1096 companies in the Vehicles & Parts industry, placing it in the top 86.2%.
Is Lithia Motors' Debt-to-EBITDA too high?
Lithia Motors' current Debt-to-EBITDA of 6.15 is near median its 10-year median of 6.11. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 7.50. The Vehicles & Parts industry median Debt-to-EBITDA is 2.26. Lithia Motors' value of 6.15 is 172.1% above this industry median. Based on the distribution chart, Lithia Motors ranks #945 out of 1096 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Lithia Motors has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lithia Motors' Debt-to-EBITDA compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #945 out of 1096 companies for Debt-to-EBITDA. This places Lithia Motors in the lower half of its industry. The industry median Debt-to-EBITDA is 2.26. Lithia Motors' value of 6.15 is 172.1% above this benchmark. Historically, Lithia Motors' own Debt-to-EBITDA has ranged from 2.79 to 7.50 over the past decade. While the company's 10-year median is 6.11 vs. the industry median of 2.26, Lithia Motors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.26, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current Debt-to-EBITDA of 6.15 is 172.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lithia Motors. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current Debt-to-EBITDA is 6.15, which is near median its own 10-year median of 6.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lithia Motors stock overvalued right now?
Based on GuruFocus' analysis, Lithia Motors (LAD) is currently considered Fairly Valued. The stock's GF Value™ is $380.67, compared to a current price of $385.42 — trading 1.2% above its estimated fair value. The current Debt-to-EBITDA is 6.15, which is near median its 10-year median of 6.11 and 172.1% above the Vehicles & Parts industry median of 2.26. Lithia Motors' overall GF Score™ is 90/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Lithia Motors (LAD), the current Debt-to-EBITDA is 6.15 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lithia Motors (LAD) Overvalued in 2026?
Based on GuruFocus' analysis, Lithia Motors stock appears to be overvalued.
The current stock price of $385.42 is trading 1.2% above its estimated GF Value™ of $380.67.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for LAD:
Debt-to-EBITDA: 6.15 (near median its 10-year median of 6.11)
GF Value™: $380.67 vs. price of $385.42 (1.2% above fair value)
Industry Position: 172.1% above the Vehicles & Parts median (#945 of 1096)
No single metric tells the full story. See the LAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lithia Motors is a retailer of new and used vehicles and related services. The company offers nearly 60 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2025 was $37.6 billion and we see over $50 billion possible in a few years. The US was 78.5% of 2025 revenue and the UK second at 18.4%, due to the 2024 Pendragon acquisition. In 2025, new vehicle sales were about 50% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
90GF Score
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