LKQ Valuation

Is LKQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LKQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LKQ ($40.74) is trading below our estimate of fair value ($90.91)

Significantly Below Fair Value: LKQ is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LKQ?

Other financial metrics that can be useful for relative valuation.

LKQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA9.3x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does LKQ's PE Ratio compare to its peers?

The above table shows the PE ratio for LKQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.8x
POOL Pool
26.4x7.5%US$13.1b
GPC Genuine Parts
15.4x6.0%US$19.0b
GCT GigaCloud Technology
11.7x21.3%US$1.3b
WEYS Weyco Group
9.7xn/aUS$283.3m
LKQ LKQ
13.1x9.3%US$10.7b

Price-To-Earnings vs Peers: LKQ is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (15.8x).


Price to Earnings Ratio vs Industry

How does LKQ's PE Ratio compare vs other companies in the Global Retail Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LKQ is good value based on its Price-To-Earnings Ratio (13.1x) compared to the Global Retail Distributors industry average (16.7x).


Price to Earnings Ratio vs Fair Ratio

What is LKQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LKQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: LKQ is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LKQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$40.74
US$59.53
+46.1%
7.9%US$66.00US$53.20n/a8
Jun ’25US$43.03
US$59.46
+38.2%
8.0%US$66.00US$52.70n/a8
May ’25US$43.13
US$59.62
+38.2%
7.6%US$66.00US$52.70n/a9
Apr ’25US$53.18
US$61.32
+15.3%
7.8%US$68.00US$51.00n/a9
Mar ’25US$51.98
US$60.67
+16.7%
8.5%US$68.00US$51.00n/a9
Feb ’25US$47.74
US$60.40
+26.5%
9.3%US$68.00US$49.00n/a10
Jan ’25US$47.79
US$60.60
+26.8%
9.4%US$68.00US$49.00n/a10
Dec ’24US$45.49
US$60.60
+33.2%
9.4%US$68.00US$49.00n/a10
Nov ’24US$43.12
US$61.70
+43.1%
9.1%US$68.00US$49.00n/a10
Oct ’24US$49.51
US$65.10
+31.5%
10.2%US$72.00US$46.50n/a10
Sep ’24US$52.87
US$65.10
+23.1%
10.2%US$72.00US$46.50n/a10
Aug ’24US$55.45
US$64.74
+16.8%
10.4%US$72.00US$46.50n/a10
Jul ’24US$58.27
US$64.34
+10.4%
10.0%US$70.00US$46.50n/a10
Jun ’24US$52.08
US$64.43
+23.7%
9.9%US$70.00US$46.50US$43.0310
May ’24US$58.11
US$64.43
+10.9%
9.9%US$70.00US$46.50US$43.1310
Apr ’24US$56.76
US$64.23
+13.2%
9.8%US$70.00US$46.50US$53.1810
Mar ’24US$57.42
US$63.60
+10.8%
10.8%US$70.00US$46.50US$51.9810
Feb ’24US$58.34
US$63.00
+8.0%
10.8%US$68.00US$45.50US$47.7410
Jan ’24US$53.41
US$63.00
+18.0%
10.7%US$68.00US$45.50US$47.7911
Dec ’23US$55.08
US$63.00
+14.4%
10.7%US$68.00US$45.50US$45.4911
Nov ’23US$53.50
US$63.00
+17.8%
10.7%US$68.00US$45.50US$43.1211
Oct ’23US$47.15
US$62.41
+32.4%
10.9%US$70.00US$47.00US$49.5111
Sep ’23US$53.38
US$62.41
+16.9%
10.9%US$70.00US$47.00US$52.8711
Aug ’23US$55.27
US$62.05
+12.3%
10.5%US$68.00US$47.00US$55.4511
Jul ’23US$49.54
US$62.35
+25.9%
12.5%US$74.00US$46.00US$58.2710
Jun ’23US$50.55
US$63.50
+25.6%
11.5%US$74.00US$46.00US$52.089

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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