Lithia Motors Stock Market Value
| LAD Stock | USD 386.16 4.83 1.24% |
| Symbol | Lithia |
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lithia Motors. If investors know Lithia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lithia Motors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lithia Motors is measured differently than its book value, which is the value of Lithia that is recorded on the company's balance sheet. Investors also form their own opinion of Lithia Motors' value that differs from its market value or its book value, called intrinsic value, which is Lithia Motors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lithia Motors' market value can be influenced by many factors that don't directly affect Lithia Motors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lithia Motors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lithia Motors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lithia Motors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Lithia Motors 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Lithia Motors' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Lithia Motors.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Lithia Motors on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding Lithia Motors or generate 0.0% return on investment in Lithia Motors over 30 days. Lithia Motors is related to or competes with Sonic Automotive, AutoNation, Asbury Automotive, Penske Automotive, and Group 1. Lithia Motors, Inc. operates as an automotive retailer in the United States More
Lithia Motors Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Lithia Motors' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Lithia Motors upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.88 | |||
| Information Ratio | 0.1241 | |||
| Maximum Drawdown | 13.35 | |||
| Value At Risk | (3.18) | |||
| Potential Upside | 3.52 |
Lithia Motors Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lithia Motors' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lithia Motors' standard deviation. In reality, there are many statistical measures that can use Lithia Motors historical prices to predict the future Lithia Motors' volatility.| Risk Adjusted Performance | 0.1416 | |||
| Jensen Alpha | 0.2308 | |||
| Total Risk Alpha | 0.0513 | |||
| Sortino Ratio | 0.1601 | |||
| Treynor Ratio | 0.2588 |
Lithia Motors Backtested Returns
Lithia Motors appears to be very steady, given 3 months investment horizon. Lithia Motors has Sharpe Ratio of 0.18, which conveys that the firm had a 0.18% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Lithia Motors, which you can use to evaluate the volatility of the firm. Please exercise Lithia Motors' Mean Deviation of 1.75, downside deviation of 1.88, and Risk Adjusted Performance of 0.1416 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Lithia Motors holds a performance score of 13. The company secures a Beta (Market Risk) of 1.61, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lithia Motors will likely underperform. Please check Lithia Motors' skewness, day typical price, and the relationship between the downside variance and daily balance of power , to make a quick decision on whether Lithia Motors' current price movements will revert.
Auto-correlation | 0.90 |
Excellent predictability
Lithia Motors has excellent predictability. Overlapping area represents the amount of predictability between Lithia Motors time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Lithia Motors price movement. The serial correlation of 0.9 indicates that approximately 90.0% of current Lithia Motors price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.9 | |
| Spearman Rank Test | 0.75 | |
| Residual Average | 0.0 | |
| Price Variance | 73.37 |
Lithia Motors lagged returns against current returns
Autocorrelation, which is Lithia Motors stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Lithia Motors' stock expected returns. We can calculate the autocorrelation of Lithia Motors returns to help us make a trade decision. For example, suppose you find that Lithia Motors has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Lithia Motors regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Lithia Motors stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lithia Motors stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lithia Motors stock over time.
Current vs Lagged Prices |
| Timeline |
Lithia Motors Lagged Returns
When evaluating Lithia Motors' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lithia Motors stock have on its future price. Lithia Motors autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Lithia Motors autocorrelation shows the relationship between Lithia Motors stock current value and its past values and can show if there is a momentum factor associated with investing in Lithia Motors.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Lithia Motors is a strong investment it is important to analyze Lithia Motors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lithia Motors' future performance. For an informed investment choice regarding Lithia Stock, refer to the following important reports:Check out Lithia Motors Correlation, Lithia Motors Volatility and Lithia Motors Alpha and Beta module to complement your research on Lithia Motors. For information on how to trade Lithia Stock refer to our How to Trade Lithia Stock guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Lithia Motors technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.