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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-09-13), Lithia Motors's 3-Year Sortino Ratio is 0.37.
Lithia Motors (NYSE:LAD) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Lithia Motors 3-Year Sortino Ratio Related Terms
LAD vs RUSHA, KMX, AN: 3-Year Sortino Ratio Comparison
For the Auto & Truck Dealerships subindustry, Lithia Motors's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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 3-Year Sortino Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Lithia Motors's 3-Year Sortino Ratio falls into.
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Lithia Motors (LAD) has a 3-Year Sortino Ratio of 0.37 as of Sep. 13, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Lithia Motors and its competitors.
Is Lithia Motors' 3-Year Sortino Ratio too high?
Lithia Motors' current 3-Year Sortino Ratio is 0.37. Overall, Lithia Motors has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lithia Motors' 3-Year Sortino Ratio compare to RUSHA and KMX?
Lithia Motors' 3-Year Sortino Ratio of 0.37 can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Vehicles & Parts company?
A good 3-Year Sortino Ratio depends on the Vehicles & Parts industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Lithia Motors and its competitors. Lithia Motors's current 3-Year Sortino Ratio is 0.37. 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 $387.23, compared to a current price of $358.02 — trading 7.5% below its estimated fair value. The current 3-Year Sortino Ratio is 0.37. Lithia Motors' overall GF Score™ is 93/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Lithia Motors (LAD), the current 3-Year Sortino Ratio is 0.37 as of Sep. 13, 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 undervalued.
The current stock price of $358.02 is trading 7.5% below its estimated GF Value™ of $387.23.
GuruFocus considers Lithia Motors to be Fairly Valued.
Key valuation signals for LAD:
3-Year Sortino Ratio: 0.37
GF Value™: $387.23 vs. price of $358.02 (7.5% below fair value)
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.
93GF Score
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