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 8.04 is considered Undervalued compared with the five-year average of 11.74. The fair price of Lear Corp (LEA) is between 123.80 to 207.54 according to relative valuation methord. Compared to the current price of 108.94 USD , Lear Corp is Undervalued By 12%.
Relative Value
Fair Zone
123.80-207.54
Current Price：108.94
12%
Undervalued
8.04
PE
1Y
3Y
5Y
Trailing
Forward
4.87
EV/EBITDA
Lear Corp. (LEA) has a current EV/EBITDA of 4.87. The 5-year average EV/EBITDA is 6.08. The thresholds are as follows: Strongly Undervalued below 3.77, Undervalued between 3.77 and 4.92, Fairly Valued between 7.24 and 4.92, Overvalued between 7.24 and 8.40, and Strongly Overvalued above 8.40. The current Forward EV/EBITDA of 4.87 falls within the Undervalued range.
7.57
EV/EBIT
Lear Corp. (LEA) has a current EV/EBIT of 7.57. The 5-year average EV/EBIT is 9.64. The thresholds are as follows: Strongly Undervalued below 5.59, Undervalued between 5.59 and 7.62, Fairly Valued between 11.66 and 7.62, Overvalued between 11.66 and 13.69, and Strongly Overvalued above 13.69. The current Forward EV/EBIT of 7.57 falls within the Undervalued range.
0.24
PS
Lear Corp. (LEA) has a current PS of 0.24. The 5-year average PS is 0.36. The thresholds are as follows: Strongly Undervalued below 0.15, Undervalued between 0.15 and 0.25, Fairly Valued between 0.46 and 0.25, 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.
5.90
P/OCF
Lear Corp. (LEA) has a current P/OCF of 5.90. The 5-year average P/OCF is 6.12. The thresholds are as follows: Strongly Undervalued below 1.93, Undervalued between 1.93 and 4.02, Fairly Valued between 8.21 and 4.02, Overvalued between 8.21 and 10.31, and Strongly Overvalued above 10.31. The current Forward P/OCF of 5.90 falls within the Historic Trend Line -Fairly Valued range.
31.77
P/FCF
Lear Corp. (LEA) has a current P/FCF of 31.77. The 5-year average P/FCF is 17.40. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 8.89, Fairly Valued between 25.90 and 8.89, Overvalued between 25.90 and 34.41, and Strongly Overvalued above 34.41. The current Forward P/FCF of 31.77 falls within the Overvalued range.
Lear Corp (LEA) has a current Price-to-Book (P/B) ratio of 1.12. Compared to its 3-year average P/B ratio of 1.40 , the current P/B ratio is approximately -20.10% higher. Relative to its 5-year average P/B ratio of 1.67, the current P/B ratio is about -33.25% higher. Lear Corp (LEA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.47% , the current FCF yield is about -100.00% lower.
1.12
P/B
Median3y
1.40
Median5y
1.67
12.96
FCF Yield
Median3y
7.75
Median5y
5.47
Competitors Valuation Multiple
The average P/S ratio for LEA's competitors is , providing a benchmark for relative valuation. Lear Corp Corp (LEA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.71%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LEA increased by 15.04% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.00 to 13.34.
The secondary factor is the Revenue Growth, contributed 1.71%to the performance.
Overall, the performance of LEA in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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