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Lithia MotorsLAD -4.84%90 PEG Ratio is 0.64 as of Aug. 03, 2026, which is 42% above its 10-year median of 0.45. GuruFocus rates LAD with a GF Score™ of 90/100 and a GF Value™ of $380.88 (Fairly Valued). The stock has 13 warning signs investors should review. Among 672 Vehicles & Parts companies, Lithia Motors ranks better than 71.43% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Lithia Motors's PEG Ratio or its related term are showing as below:
LAD'
s PEG Ratio Range Over the Past 10 Years
Min: 0.11 Med: 0.45 Max: 1.16
Current: 0.64
During the past 13 years, Lithia Motors's highest PEG Ratio was 1.16. The lowest was 0.11. And the median was 0.45.
LAD's PEG Ratio is ranked better than 71.43% of 672
companies
in the Vehicles & Parts industry
Industry Median: 1.145
vs LAD: 0.64
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Lithia Motors PEG Ratio Related Terms
Lithia Motors PEG Ratio Historical Data
* Premium members only.
The historical data trend for Lithia Motors's PEG 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.
For the Auto & Truck Dealerships subindustry, Lithia Motors's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Lithia Motors's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Lithia Motors (LAD) has a PEG Ratio of 0.64 as of Aug. 03, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Lithia Motors and its competitors. This is 42% above median its historical median of 0.45. Over the past decade, Lithia Motors' PEG Ratio has ranged from 0.11 to 1.16. According to the industry distribution chart, Lithia Motors ranks #192 out of 672 companies in the Vehicles & Parts industry, placing it in the top 28.6%.
Is Lithia Motors' PEG Ratio too high?
Lithia Motors' current PEG Ratio of 0.64 is 42% above median its 10-year median of 0.45. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 1.16. The Vehicles & Parts industry median PEG Ratio is 1.15. Lithia Motors' value of 0.64 is 44.1% below this industry median. Based on the distribution chart, Lithia Motors ranks #192 out of 672 companies in the Vehicles & Parts industry, which is above the industry midpoint. 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' PEG Ratio compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Lithia Motors ranks #192 out of 672 companies for PEG Ratio. This puts Lithia Motors in the upper half of its industry. The industry median PEG Ratio is 1.15. Lithia Motors' value of 0.64 is 44.1% below this benchmark. Historically, Lithia Motors' own PEG Ratio has ranged from 0.11 to 1.16 over the past decade. While the company's 10-year median is 0.45 vs. the industry median of 1.15, Lithia Motors has consistently been below 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 PEG Ratio for a Vehicles & Parts company?
The median PEG Ratio among Vehicles & Parts companies is 1.15, based on 672 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lithia Motors's current PEG Ratio of 0.64 is 44.1% below 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Lithia Motors and its competitors. For the Vehicles & Parts industry, the median PEG Ratio is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithia Motors's current PEG Ratio is 0.64, which is 42% above median its own 10-year median of 0.45. 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 $380.88, compared to a current price of $385.42 — trading 1.2% above its estimated fair value. The current PEG Ratio is 0.64, which is 42% above median its 10-year median of 0.45 and 44.1% below the Vehicles & Parts industry median of 1.15. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Lithia Motors (LAD), the current PEG Ratio is 0.64 as of Aug. 03, 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 $380.88.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for LAD:
PEG Ratio: 0.64 (42% above median its 10-year median of 0.45)
GF Value™: $380.88 vs. price of $385.42 (1.2% above fair value)
Industry Position: 44.1% below the Vehicles & Parts median (#192 of 672)
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.
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