Lithia Motors (LAD) is back in the spotlight after Lithia & Driveway secured a place on the Fortune Global 500 for the second year, moving to No. 426 and reinforcing its expanding automotive retail footprint.

The Fortune Global 500 recognition arrives at a time when Lithia Motors’ share price has gained 14.25% over the past 30 days and 35.33% over 90 days, while its 1 year total shareholder return sits at 22.08%. This points to building momentum around the expansion story.

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Lithia Motors now sits on the Fortune Global 500 and a share price that has moved sharply over the past quarter. The business looks sizeable and integrated. The next step is to test whether the current valuation still stacks up.

Most Popular Narrative: 16.3% Undervalued

The most followed narrative for Lithia Motors points to a fair value of $443.88 compared with the last close at $371.51. That gap rests on a specific view of how its higher margin activities and digital platform evolve from here.

Sustained strength and growth in aftersales (service, parts, warranty) driven by the aging U.S. vehicle fleet and longer replacement cycles is boosting high-margin, recurring revenue streams. Over 60% of Lithia's net profit now comes from aftersales, providing stability and earnings growth not reflected in current valuations.

Want to see what drives that valuation gap for Lithia Motors? The narrative focuses on aftersales, digital channels, acquisitions and buybacks, all tied to specific growth, margin and discount rate assumptions that you can check line by line in the full breakdown.

Result: Fair Value of $443.88 (UNDERVALUED)

However, the Lithia Motors story could change quickly if acquisition deals stop adding value, or if higher SG&A costs keep squeezing margins despite efficiency efforts.

Next Steps

If the Lithia Motors story so far feels mixed, consider taking prompt action and reviewing the figures yourself with 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Lithia Motors?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.