Lithia Motors Inc (LAD) is undervalued and Valvoline Inc (VVV) is overvalued.
Against our estimates of intrinsic value, LAD trades at the wider discount: a margin of safety of +67%, against -172% for VVV.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.9% (average of 2 methods) values the shares at $940.77; the price of $312.32 is 67% below that value, and 84% of that value comes from beyond year five.
Leak Score 41/100 on 3 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $10.54; the price of $28.67 is 172% above that value, and 77% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | LAD | VVV |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $312.32 | $28.67 |
| Intrinsic value | $940.77 | $10.54 |
| Margin of safety | +67% | -172% |
| Leak Score | 41/100 (3/12) | 14/100 (3/12) |
| Market cap | $6.9B | $3.7B |
| Revenue growth, 5 years | 23.4% | -6.2% |
| Operating margin | 3.8% | 17.7% |
| Net margin | 1.9% | 5.2% |
| Return on equity | 10.7% | 28.4% |
| Debt to equity | 2.59 | 4.75 |
| P/E | 10.3x | 36.3x |
| Forward P/E | 7.3x | 14.4x |
| P/B | 1.1x | 8.8x |
| Dividend yield | 0.7% | — |