DCF Tool


Lithia Motors, Inc. – New Car Dealers
at lithia our success is driven by a passion for cars and for serving our customers. lithia auto stores is one of the largest and most trusted automotive retailers in the u.s., providing outstanding sales, service, parts, and auto financing to urban and rural customers in 14 states. lithia’s road to success has taken us from a single dealership in ashland, oregon to a publicly traded company with approximately 130 locations. join an auto retailer that believes our growth relies on the growth of our people. members of team lithia get the tools they need to succeed, including ongoing training in a promote-from-within culture. our early beginnings were the road map leading us to a present day. a journey filled with healthy challenges and exciting opportunities. we’re a company that believes in our core values and living them through personal ownership, an entrepreneurial spirit, high standards and best practices, while thriving in a dynamic work place. come “take the journey with us
Analysis Results
Intrinsic Value $1,664.35
Latest Price $290.30
Relative Value 83% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.18 1.11
2024 1.37 1.22
2025 1.58 1.33
2026 1.83 1.46
2027 2.13 1.59
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 55.4 billion. This corresponds to a present value of 39.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.71 billion. Adding in the terminal value gives a total present value of 45.9 billion.

There are presently 27.6 million outstanding shares, so the intrinsic value per share is 1664.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,630,900,000
Current Cash 246,700,000
Current Liabilities 3,178,200,000
Current Debt 2,137,100,000
Non-Cash Working Capital (NCWC) 3,343,100,000
Change in NCWC 973,600,000
EBIT 1,941,100,000
Tax Provision 468,400,000
Depreciation and Amortization 228,100,000
Capital Expenditure -303,100,000
Unlevered Free Cash Flow 2,314,144,369
Current Assets 3,533,300,000
Current Cash 174,800,000
Current Liabilities 2,402,800,000
Current Debt 1,413,800,000
Non-Cash Working Capital (NCWC) 2,369,500,000
Change in NCWC -191,400,000
EBIT 1,669,800,000
Tax Provision 422,100,000
Depreciation and Amortization 166,300,000
Capital Expenditure -260,400,000
Unlevered Free Cash Flow 909,608,068
Current Assets 3,337,600,000
Current Cash 160,200,000
Current Liabilities 2,479,700,000
Current Debt 1,863,200,000
Non-Cash Working Capital (NCWC) 2,560,900,000
Change in NCWC 36,600,000
EBIT 705,000,000
Tax Provision 178,200,000
Depreciation and Amortization 92,400,000
Capital Expenditure -167,800,000
Unlevered Free Cash Flow 472,474,479
Current Assets 3,070,500,000
Current Cash 84,000,000
Current Liabilities 2,569,100,000
Current Debt 2,106,900,000
Non-Cash Working Capital (NCWC) 2,524,300,000
Change in NCWC -25,600,000
EBIT 497,600,000
Tax Provision 103,900,000
Depreciation and Amortization 82,400,000
Capital Expenditure -124,900,000
Unlevered Free Cash Flow 291,778,529
Current Assets 2,991,400,000
Current Cash 31,600,000
Current Liabilities 2,493,500,000
Current Debt 2,083,600,000
Non-Cash Working Capital (NCWC) 2,549,900,000
Change in NCWC 187,450,000
EBIT 448,300,000
Tax Provision 71,800,000
Depreciation and Amortization 75,400,000
Capital Expenditure -158,000,000
Unlevered Free Cash Flow 457,778,325
Current Assets 2,782,782,000
Current Cash 57,253,000
Current Liabilities 2,300,981,000
Current Debt 1,937,902,000
Non-Cash Working Capital (NCWC) 2,362,450,000
Change in NCWC 425,070,000
EBIT 408,986,000
Tax Provision 101,852,000
Depreciation and Amortization 57,722,000
Capital Expenditure -105,378,000
Unlevered Free Cash Flow 666,377,635
Current Assets 2,287,194,000
Current Cash 50,282,000
Current Liabilities 1,921,994,000
Current Debt 1,622,462,000
Non-Cash Working Capital (NCWC) 1,937,380,000
Change in NCWC 341,502,000
EBIT 352,356,000
Tax Provision 86,465,000
Depreciation and Amortization 49,369,000
Capital Expenditure -100,761,000
Unlevered Free Cash Flow 535,009,245
Current Assets 1,878,865,000
Current Cash 45,008,000
Current Liabilities 1,590,825,000
Current Debt 1,352,846,000
Non-Cash Working Capital (NCWC) 1,595,878,000
Change in NCWC 242,276,000
EBIT 322,859,000
Tax Provision 79,705,000
Depreciation and Amortization 41,600,000
Capital Expenditure -83,244,000
Unlevered Free Cash Flow 425,534,834
Current Assets 1,615,509,000
Current Cash 29,898,000
Current Liabilities 1,442,600,000
Current Debt 1,210,591,000
Non-Cash Working Capital (NCWC) 1,353,602,000
Change in NCWC 447,312,000
EBIT 233,752,000
Tax Provision 74,955,000
Depreciation and Amortization 26,363,000
Capital Expenditure -85,983,000
Unlevered Free Cash Flow 538,207,433
Current Assets 1,081,549,000
Current Cash 23,686,000
Current Liabilities 872,511,000
Current Debt 720,938,000
Non-Cash Working Capital (NCWC) 906,290,000
Change in NCWC 147,458,000
EBIT 183,718,000
Tax Provision 60,574,000
Depreciation and Amortization 20,035,000
Capital Expenditure -50,025,000
Unlevered Free Cash Flow 234,060,911
Current Assets 933,209,000
Current Cash 42,839,000
Current Liabilities 721,304,000
Current Debt 589,766,000
Non-Cash Working Capital (NCWC) 758,832,000
Change in NCWC 235,915,000
EBIT 148,484,000
Tax Provision 49,062,000
Depreciation and Amortization 17,314,000
Capital Expenditure -64,584,000
Unlevered Free Cash Flow 280,418,022

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