Lithia Motors (LAD)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $6.7B, Lithia Motors's free cash flow of $6M (fiscal 2025) would need to grow about 63% a year for the stock to be worth today's price. That is faster than the company has grown its free cash flow over the last 8 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from Lithia Motors's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from LAD's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from Lithia Motors's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $22.8B | $28.2B | $31.0B | $36.2B | $37.6B |
| Net income | $1.1B | $1.3B | $1.0B | $797M | $820M |
| Free cash flow | $1.5B | -$913M | -$703M | $74M | $6M |
| EPS (diluted) | $36.54 | $44.17 | $36.29 | $29.45 | $32.32 |
| Operating margin | 7.3% | 6.9% | 5.5% | 4.3% | 4.2% |
Where the revenue comes from
Revenue by segments, fiscal 2021.
Superinvestors who own LAD
From each investor's latest 13F filing (what a 13F shows). 8 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| David Abrams Abrams Capital Management |
Held | $723M | 13.2% | Q2 2026 |
| Bill Nygren Harris Associates LP |
Trimmed | $556M | 0.74% | Q2 2026 |
| Andrew Wellington Lyrical Asset Management |
Added | $145M | 1.8% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Added | $34M | 0.08% | Q2 2026 |
| Cliff Asness AQR Capital Management |
Added | $30M | 0.01% | Q2 2026 |
| Jean-Marie Eveillard First Eagle Investment Management |
Added | $19M | 0.03% | Q2 2026 |
| Ruane, Cunniff & Goldfarb Ruane, Cunniff & Goldfarb |
Trimmed | $852,007 | 0.01% | Q2 2026 |
| Bill Miller Miller Value Partners |
Added | $787,809 | 0.19% | Q2 2026 |
Insider buying
Open-market purchases by Lithia Motors's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
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In the full deep dive
Questions
What growth does Lithia Motors's stock price imply?
At a market value of $6.7B, Lithia Motors would need its free cash flow to grow about 63% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 8 years its free cash flow grew -22% a year.
Are Lithia Motors insiders buying the stock?
No open-market insider purchases of LAD in the last 12 months, according to SEC Form 4 filings.
Which superinvestors own Lithia Motors?
8 of the superinvestors Investingly tracks hold LAD in their latest 13F, including David Abrams, Bill Nygren, Andrew Wellington.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.