Is LKQ Corp. overvalued or undervalued?

As of 7 July 2025, LKQ Corp. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears to be overvalued, with 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 peers, Autoliv, Inc. has a fair P/E of 18.06 and Gentex Corp. has a fair P/E of 15.33, highlighting that LKQ Corp. is trading at a lower valuation multiple despite its very expensive rating.
The recent stock performance further underscores this valuation concern, as LKQ Corp. has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -15.29% compared to the S&P 500's 12.22%. This trend of underperformance, coupled with its elevated valuation ratios, reinforces the conclusion that LKQ Corp. is overvalued in the current market environment.