LKQ — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($31.90)
DCF	$33.62	+5.4%
Graham Number	$36.50	+14.4%
Reverse DCF	—	implied g: 4.4%
DDM	$24.72	-22.5%
EV/EBITDA	$32.87	+3.1%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $758.75M

Near-term growth (yrs 1–5)(%)Rev: 2.7% / EPS: -57.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.61%

Computed WACC: 5.61%

Cost of equity (Re)9.09%(Rf 4.30% + β 0.87 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)61.74%

Debt weight (D/V)38.26%

Results

Intrinsic Value / share$91.25

Current Price$31.90

Upside / Downside+186.0%

Net Debt (used)$4.74B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$34.07	$44.72	$57.11	$71.45	$87.97
8.0%	$24.70	$33.27	$43.23	$54.74	$67.98
9.0%	$18.21	$25.35	$33.62	$43.18	$54.16
10.0%	$13.44	$19.53	$26.58	$34.71	$44.04
11.0%	$9.79	$15.08	$21.20	$28.24	$36.32

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.31

Book Value / share($)Yahoo: $25.64

Results

Graham Number$36.50

Current Price$31.90

Margin of Safety+14.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.61%

Terminal growth rate(%)

Computed WACC: 5.61%

Cost of equity (Re)9.09%(Rf 4.30% + β 0.87 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)61.74%

Debt weight (D/V)38.26%

Results

Current Price$31.90

Implied Near-term FCF Growth-6.7%

Historical Revenue Growth2.7%

Historical Earnings Growth-57.7%

Base FCF (TTM)$758.75M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$24.72

Current Price$31.90

Upside / Downside-22.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.50B

Target EV/EBITDA multipleCurrent: 8.8×

Net Debt($B)Default: $4.74B

Results

Implied Equity Value / share$32.87

Current Price$31.90

Upside / Downside+3.1%

Implied EV$13.13B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$2.74B	$3.74B	$4.74B	$5.74B	$6.74B
4.8x	$17.27	$13.35	$9.43	$5.52	$1.60
6.8x	$28.99	$25.07	$21.15	$17.23	$13.32
8.8x	$40.71	$36.79	$32.87	$28.95	$25.03
10.8x	$52.43	$48.51	$44.59	$40.67	$36.75
12.8x	$64.15	$60.23	$56.31	$52.39	$48.47

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