Is LKQ Corp. overvalued or undervalued?

As of 6 May 2025, LKQ Corp. has moved from an expensive valuation grade to a very expensive one, indicating a significant shift in its perceived market value. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.07, and a Price to Book Value of 1.82.
In comparison to its peers, LKQ Corp.'s P/E ratio is lower than Autoliv, Inc. at 15.26 but higher than Gentex Corp. at 12.17, which suggests that while it may be cheaper relative to some competitors, it remains overpriced overall. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a one-year return of -10.32% compared to the index's 10.26%, further reinforcing the notion of overvaluation.