Update shared on 07 Nov 2025
Fair value Increased 0.26%Analysts have slightly increased their price target for Lithia Motors by $1 to $388.71. They cite marginal improvements in projected profit margins and fair value estimates as the reason for this adjustment.
What's in the News
- From July 1, 2025 to October 22, 2025, Lithia Motors repurchased 1,377,225 shares, completing a total buyback of 10,444,916 shares, or 39.42% for $2,261.98 million (Buyback Tranche Update).
- The company announced an increase in its equity buyback plan, raising authorization by $750 million and bringing the total to $3,104.34 million as of August 26, 2025 (Buyback - Change in Plan Terms).
- Lithia & Driveway achieved position #124 on the Fortune 500 and #434 on the Fortune Global 500, marking its first appearance on the global list. The company remains No. 1 in the Automotive Retail category, has expanded its dealership network in North America and the UK, and acquired Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis in the Southeast region (Business Expansions).
Valuation Changes
- The Fair Value Estimate has increased slightly from $387.71 to $388.71 per share.
- The Discount Rate has risen from 12.32% to 12.5%.
- The Revenue Growth projection has decreased marginally, moving from 4.19% to 4.17%.
- The Net Profit Margin expectation has inched up from 2.75% to 2.75%.
- The Future P/E multiple has declined from 9.85x to 8.98x.
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