Is LKQ Corp. overvalued or undervalued?

As of 17 October 2025, LKQ Corp. has moved from an expensive to a very expensive valuation grade. The company is overvalued based on its current 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, peers such as Autoliv, Inc. and Gentex Corp. have fair valuations with P/E ratios of 18.06 and 15.33, respectively, indicating that LKQ Corp. is trading at a premium relative to its industry counterparts.
Additionally, LKQ Corp. has underperformed against the S&P 500 across multiple timeframes, 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 81.19% for the benchmark, reinforcing the notion that the stock is overvalued given its lackluster performance relative to the market.