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 shift in its perceived value. The company is currently overvalued, with a P/E ratio of 14, a Price to Book Value of 1.82, and an EV to EBITDA ratio of 9.07, which are all relatively high compared to its peers. For instance, Autoliv, Inc. has a P/E ratio of 18.06 and Gentex Corp. has a P/E of 15.33, both of which suggest that LKQ Corp. is trading at a premium compared to these competitors.
In terms of recent performance, LKQ Corp. has underperformed against the S&P 500, with a year-to-date return of -18.26% compared to the S&P 500's 13.30%. This trend continues over longer periods, with a 3-year return of -40.63% versus the S&P 500's 81.19%. These figures reinforce the view that LKQ Corp. is overvalued in the current market context.