LKQ Corporation (LKQ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+308.5%

$81.41

vs $19.93 price

Levered DCF

$74.39

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.35

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.85×	13.97×	13.58×	12.87×	16.31×	16.78×	20.4×	15.51×
P/B	1.18×	1.61×	2.07×	2.71×	3.09×	1.9×	2.21×	1.56×
P/S	0.56×	0.67×	0.92×	1.16×	1.36×	0.92×	0.89×	0.63×
EV / EBITDA	8.5×	9.26×	10.25×	9.92×	12.4×	11.21×	13.05×	9.8×
Gross margin	38.0%	39.1%	40.2%	40.8%	40.7%	39.5%	38.8%	38.5%
Operating margin	7.8%	8.4%	9.8%	12.4%	11.3%	8.5%	7.2%	7.4%
Net margin	4.4%	4.8%	6.8%	9.0%	8.3%	5.5%	4.3%	4.0%
Current ratio	1.67×	1.71×	1.47×	1.87×	1.96×	2.03×	2.15×	2.67×
Debt / equity	0.77×	0.93×	0.91×	0.72×	0.73×	0.76×	1.08×	0.9×
Interest coverage	4.85×	4.58×	6.34×	20.27×	20.64×	8.89×	5.6×	5.43×
Dividend yield	4.0%	3.3%	2.4%	1.9%	0.4%	0.0%	0.0%	0.0%
Payout ratio	51.1%	46.1%	32.3%	24.7%	6.8%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.3%	11.5%	15.2%	21.1%	18.9%	11.3%	10.8%	10.0%
Return on invested capital	6.6%	7.0%	8.1%	11.8%	10.6%	6.7%	5.8%	6.4%
Return on assets	4.0%	4.6%	6.2%	9.5%	8.7%	5.2%	4.2%	4.2%
Free cash flow yield	11.0%	8.4%	7.8%	6.9%	6.0%	11.8%	7.2%	6.2%
Earnings yield	7.9%	7.1%	7.3%	7.8%	6.1%	5.9%	4.9%	6.4%
Enterprise value	$12.5B	$15.1B	$18.1B	$18.5B	$21.8B	$14.7B	$16B	$11.4B
Net debt / EBITDA	3.23×	3.31×	3.02×	1.97×	2.25×	3.03×	3.99×	3.41×
Cash conversion cycle (days)	87	88	96	97	97	111	120	130