Is LKQ Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for LKQ Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its P/E ratio of 14, which is lower than the industry average, but the high Price to Book Value of 1.82 and an EV to EBITDA ratio of 9.07 suggest that investors are paying a premium for its earnings and assets.
In comparison to peers, LKQ Corp. has a P/E ratio of 12.1890, which is below Autoliv, Inc. at 18.0616 and Gentex Corp. at 15.3259, both of which are considered fairly valued. Additionally, LKQ Corp.'s recent stock performance has been poor, with a year-to-date return of -18.26%, significantly underperforming the S&P 500's 13.30% return in the same period. This reinforces the conclusion that LKQ Corp. is overvalued in the current market environment.