LKQ EV/EBITDA Analysis

EV/EBITDA compares a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization, effectively showing how many years of operating profit it would take to buy the business at 8.0x.

LKQ trades well below the sector median of 13.5x, sitting at the 22nd percentile among peers, meaning most comparable companies carry higher multiples. The metric is stable, with a year-over-year increase of +3.9% and a quarter-over-quarter decrease of -0.6%, while the last eight quarters have held between roughly 7.6x and 8.1x. This combination of a low, steady multiple suggests limited downside from valuation compression, but also no immediate re-rating catalyst from expansion. It implies a balanced risk profile: the stock is not expensive relative to peers, yet the flat trend offers no clear upside pressure. Overall, this metric supports the NEUTRAL verdict, as the valuation is neither stretched enough to signal danger nor discounted enough to imply clear opportunity.

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