Below are the five companies in the Automotive Retail industry with the highest Enterprise Value (EV) to Forward EBITDA ratios. EV/Forward EBITDA is an important metric used in valuing comparable companies and is based on estimated cash flow. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.
Carmax (NYSE:KMX) has the highest with EV/Forward EBITDA of 12.93x; Penske Auto Group (NYSE:PAG) is next with EV/Forward EBITDA of 12.00x; and AutoNation (NYSE:AN) has the next highest with EV/Forward EBITDA of 11.61x.
Group 1 Automotive (NYSE:GPI) follows with EV/Forward EBITDA of 9.62x and Lithia Motors (NYSE:LAD) rounds out the group with EV/Forward EBITDA of 8.92x.
SmarTrend currently has shares of Lithia Motors in an Uptrend and issued the Uptrend alert on April 05, 2011 at $15.17. The stock has risen 13.8% since the Uptrend alert was issued.
