Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Lithia Motors's Enterprise Value is $17,250 Mil.
Lithia Motors's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $1,688 Mil. Therefore, Lithia Motors's EV-to-EBIT ratio for today is 10.22.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Lithia Motors's Enterprise Value is $17,250 Mil.
Lithia Motors's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was $1,952 Mil. Therefore, Lithia Motors's EV-to-EBITDA ratio for today is 8.84.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Lithia Motors's Enterprise Value is $17,250 Mil.
Lithia Motors's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was $31,037 Mil. Therefore, Lithia Motors's EV-to-Revenue ratio for today is 0.56.
Lithia Motors Enterprise Value Historical Data
The historical data trend for Lithia Motors's Enterprise Value 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.
Competitive Comparison of Lithia Motors's Enterprise Value
For the Auto & Truck Dealerships subindustry, Lithia Motors's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Lithia Motors's Enterprise Value falls into.
Lithia Motors Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Lithia Motors's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as
* 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 (NYSE:LAD) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Lithia Motors's current Enterprise Value is $17,250 Mil.
Lithia Motors's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,688 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Lithia Motors's current Enterprise Value is $17,250 Mil.
Lithia Motors's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,952 Mil.
Lithia Motors's current Enterprise Value is $17,250 Mil.
Lithia Motors's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $31,037 Mil.
* 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Lithia Motors's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Lithia Motors (Lithia Motors) Business Description
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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