The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Lithia Motors's share price is $332.37.
Lithia Motors's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $1,271.74. Hence, Lithia Motors's PS Ratio for today is 0.26.
Warning Sign:
Lithia Motors Inc stock PS Ratio (=0.27) is close to 2-year high of 0.3
The historical rank and industry rank for Lithia Motors's PS Ratio or its related term are showing as below:
LAD'
s PS Ratio Range Over the Past 10 Years
Min: 0.12 Med: 0.28 Max: 0.73
Current: 0.27
During the past 13 years, Lithia Motors's highest PS Ratio was 0.73. The lowest was 0.12. And the median was 0.28.
LAD's PS Ratio is ranked better than 75.88% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 0.83
vs LAD: 0.27
Lithia Motors Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Lithia Motors was 15.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 27.30% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 20.20% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 20.50% per year.
During the past 13 years, Lithia Motors's highest 3-Year average Revenue per Share Growth Rate was 78.00% per year. The lowest was -15.40% per year. And the median was 17.15% per year.
Back to Basics: PS Ratio
Lithia Motors PS Ratio Historical Data
The historical data trend for Lithia Motors's PS 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.
Competitive Comparison of Lithia Motors's PS Ratio
For the Auto & Truck Dealerships subindustry, Lithia Motors's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lithia Motors's PS Ratio distribution charts can be found below:
* The bar in red indicates where Lithia Motors's PS Ratio falls into.
Lithia Motors PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Lithia Motors's Share Price of today is $332.37. Lithia Motors's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,271.74.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Lithia Motors PS Ratio Related Terms
Thank you for viewing the detailed overview of Lithia Motors's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 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 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise to around 20% with the 2024 Pendragon acquisition. In 2023, new-car sales were about 49% 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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