LKQ Corporation

NasdaqGS:LKQ Stock Report

Mkt Cap: US$15.5b

We’ve recently updated our valuation analysis.

LKQ Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.5x
Enterprise Value/EBITDA11.3x
PEG Ratio-37.2x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average15x
GPC Genuine Parts
19.8x6.7%US$23.4b
POOL Pool
18.9x-4.9%US$14.8b
FNKO Funko
12.5x30.3%US$613.9m
WEYS Weyco Group
8.5xn/aUS$254.4m
LKQ LKQ
13x-0.4%US$15.5b

Price-To-Earnings vs Peers: LKQ is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (15x).

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/a1.8%
 n/an/an/a

Price-To-Earnings vs Industry: LKQ is good value based on its Price-To-Earnings Ratio (13x) compared to the Global Retail Distributors industry average (14.7x)

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 Ratio13x
Fair PE Ratio11.4x

Price-To-Earnings vs Fair Ratio: LKQ is expensive based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (11.4x).

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 ($57.88) is trading below our estimate of fair value ($59.91)

Significantly Below Fair Value: LKQ is trading below fair value, but not by a significant amount.

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$57.88
US$63.00
+8.8%
10.8%US$68.00US$45.50n/a10
Jan ’24US$53.41
US$63.00
+18.0%
10.7%US$68.00US$45.50n/a11
Dec ’23US$55.08
US$63.00
+14.4%
10.7%US$68.00US$45.50n/a11
Nov ’23US$53.50
US$63.00
+17.8%
10.7%US$68.00US$45.50n/a11
Oct ’23US$47.15
US$62.41
+32.4%
10.9%US$70.00US$47.00n/a11
Sep ’23US$53.38
US$62.41
+16.9%
10.9%US$70.00US$47.00n/a11
Aug ’23US$55.27
US$62.05
+12.3%
10.5%US$68.00US$47.00n/a11
Jul ’23US$49.54
US$62.35
+25.9%
12.5%US$74.00US$46.00n/a10
Jun ’23US$50.55
US$63.50
+25.6%
11.5%US$74.00US$46.00n/a9
May ’23US$49.63
US$63.67
+28.3%
12.1%US$74.00US$44.50n/a9
Apr ’23US$45.20
US$62.95
+39.3%
11.3%US$74.00US$44.50n/a10
Mar ’23US$45.86
US$63.50
+38.5%
11.0%US$74.00US$44.50n/a11
Feb ’23US$55.71
US$64.50
+15.8%
11.1%US$74.00US$44.00n/a11
Jan ’23US$60.03
US$64.50
+7.4%
11.1%US$74.00US$44.00US$53.4111
Dec ’22US$56.08
US$64.50
+15.0%
11.1%US$74.00US$44.00US$55.0811
Nov ’22US$55.68
US$64.14
+15.2%
10.9%US$74.00US$44.00US$53.5011
Oct ’22US$51.25
US$60.00
+17.1%
10.5%US$65.00US$41.00US$47.1511
Sep ’22US$51.91
US$60.00
+15.6%
10.5%US$65.00US$41.00US$53.3811
Aug ’22US$50.75
US$59.60
+17.4%
10.8%US$65.00US$41.00US$55.2710
Jul ’22US$50.11
US$54.90
+9.6%
11.2%US$60.00US$38.00US$49.5410
Jun ’22US$51.15
US$54.90
+7.3%
11.2%US$60.00US$38.00US$50.5510
May ’22US$46.71
US$54.60
+16.9%
11.1%US$60.00US$38.00US$49.6310
Apr ’22US$42.95
US$46.60
+8.5%
9.6%US$54.00US$38.00US$45.2010
Mar ’22US$40.33
US$46.60
+15.5%
9.6%US$54.00US$38.00US$45.8610
Feb ’22US$35.96
US$41.80
+16.2%
11.5%US$54.00US$37.00US$55.7110
Jan ’22US$35.24
US$41.20
+16.9%
11.0%US$54.00US$37.00US$60.0310

Analyst Forecast: Target price is less than 20% higher than the current share price.

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