LEA Valuation

Lear Corp

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103.090

+0.04(0.039%)1D

Overview
Forecast
Valuation
Earnings

LEA Relative Valuation

LEA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LEA is overvalued; if below, it's undervalued.

Historical Valuation

Lear Corp (LEA) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.29 is considered Undervalued compared with the five-year average of 11.83. The fair price of Lear Corp (LEA) is between 136.18 to 211.28 according to relative valuation methord. Compared to the current price of 102.44 USD , Lear Corp is Undervalued By 24.78%.

Relative Value

Fair Zone

136.18-211.28

Current Price：102.44

24.78%

Undervalued

8.29

Trailing

Forward

4.75

EV/EBITDA

Lear Corp. (LEA) has a current EV/EBITDA of 4.75. The 5-year average EV/EBITDA is 6.11. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 4.97, Fairly Valued between 7.24 and 4.97, Overvalued between 7.24 and 8.38, and Strongly Overvalued above 8.38. The current Forward EV/EBITDA of 4.75 falls within the Undervalued range.

7.76

EV/EBIT

Lear Corp. (LEA) has a current EV/EBIT of 7.76. The 5-year average EV/EBIT is 9.64. The thresholds are as follows: Strongly Undervalued below 5.58, Undervalued between 5.58 and 7.61, Fairly Valued between 11.66 and 7.61, Overvalued between 11.66 and 13.69, and Strongly Overvalued above 13.69. The current Forward EV/EBIT of 7.76 falls within the Historic Trend Line -Fairly Valued range.

0.24

Lear Corp. (LEA) has a current PS of 0.24. The 5-year average PS is 0.37. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 0.27, Fairly Valued between 0.46 and 0.27, Overvalued between 0.46 and 0.56, and Strongly Overvalued above 0.56. The current Forward PS of 0.24 falls within the Undervalued range.

4.76

P/OCF

Lear Corp. (LEA) has a current P/OCF of 4.76. The 5-year average P/OCF is 6.06. The thresholds are as follows: Strongly Undervalued below 1.82, Undervalued between 1.82 and 3.94, Fairly Valued between 8.18 and 3.94, Overvalued between 8.18 and 10.31, and Strongly Overvalued above 10.31. The current Forward P/OCF of 4.76 falls within the Historic Trend Line -Fairly Valued range.

10.28

P/FCF

Lear Corp. (LEA) has a current P/FCF of 10.28. The 5-year average P/FCF is 16.34. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 8.17, Fairly Valued between 24.51 and 8.17, Overvalued between 24.51 and 32.68, and Strongly Overvalued above 32.68. The current Forward P/FCF of 10.28 falls within the Historic Trend Line -Fairly Valued range.

Lear Corp (LEA) has a current Price-to-Book (P/B) ratio of 1.08. Compared to its 3-year average P/B ratio of 1.47 , the current P/B ratio is approximately -26.64% higher. Relative to its 5-year average P/B ratio of 1.72, the current P/B ratio is about -37.21% higher. Lear Corp (LEA) has a Forward Free Cash Flow (FCF) yield of approximately 8.77%. Compared to its 3-year average FCF yield of 6.50%, the current FCF yield is approximately 34.90% lower. Relative to its 5-year average FCF yield of 4.89% , the current FCF yield is about 79.23% lower.

1.08

P/B

Median3y

1.47

Median5y

1.72

8.72

FCF Yield

Median3y

6.50

Median5y

4.89

Competitors Valuation Multiple

The average P/S ratio for LEA's competitors is 2.34, providing a benchmark for relative valuation. Lear Corp Corp (LEA) exhibits a P/S ratio of 0.24, which is -89.84% above the industry average. Given its robust revenue growth of 0.30%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Allison Transmission Holdings Inc

Atmus Filtration Technologies Inc

Performance Decomposition

Market capitalization of LEA decreased by 11.62% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.01B to 6.03B.

The secondary factor is the Margin Expansion, contributed -1.55%to the performance.

Overall, the performance of LEA in the past 1 year is driven by Revenue Growth. Which is more sustainable.

0.30%

6.01B → 6.03B

Revenue Growth

-1.55%

3.23 → 3.18

Margin Expansion

-10.37%

13.42 → 12.03

P/E Change

-11.62%