Linamar Valuation

Is LNR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LNR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNR (CA$58.83) is trading below our estimate of fair value (CA$202.58)

Significantly Below Fair Value: LNR is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNR?

Other financial metrics that can be useful for relative valuation.

LNR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA3.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LNR's PE Ratio compare to its peers?

The above table shows the PE ratio for LNR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.1x
MRE Martinrea International
5.6x27.1%CA$788.7m
MG Magna International
12x18.9%CA$16.6b
XTC Exco Technologies
10.5xn/aCA$330.4m
520056 TVS Holdings
28.1xn/a₹244.8b
LNR Linamar
6xn/aCA$3.6b

Price-To-Earnings vs Peers: LNR is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does LNR's PE Ratio compare vs other companies in the North American Auto Components Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LNR is good value based on its Price-To-Earnings Ratio (6x) compared to the North American Auto Components industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

What is LNR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LNR's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LNR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$58.83
CA$81.67
+38.8%
6.7%CA$89.00CA$74.00n/a6
Oct ’25CA$62.83
CA$83.17
+32.4%
6.2%CA$89.00CA$74.00n/a6
Sep ’25CA$63.20
CA$83.67
+32.4%
7.0%CA$92.00CA$74.00n/a6
Aug ’25CA$66.18
CA$86.83
+31.2%
8.0%CA$95.00CA$74.00n/a6
Jul ’25CA$66.49
CA$87.50
+31.6%
8.5%CA$97.00CA$74.00n/a6
Jun ’25CA$71.01
CA$87.50
+23.2%
8.5%CA$97.00CA$74.00n/a6
May ’25CA$64.31
CA$81.83
+27.2%
7.7%CA$90.00CA$70.00n/a6
Apr ’25CA$71.21
CA$82.08
+15.3%
8.1%CA$91.50CA$70.00n/a6
Mar ’25CA$65.77
CA$82.50
+25.4%
8.4%CA$93.00CA$70.00n/a6
Feb ’25CA$64.53
CA$81.80
+26.8%
9.0%CA$93.00CA$70.00n/a5
Jan ’25CA$64.02
CA$82.80
+29.3%
9.0%CA$90.00CA$70.00n/a5
Dec ’24CA$59.02
CA$83.33
+41.2%
8.3%CA$90.00CA$70.00n/a6
Nov ’24CA$60.33
CA$88.67
+47.0%
4.5%CA$96.00CA$84.00n/a6
Oct ’24CA$65.43
CA$89.33
+36.5%
4.5%CA$96.00CA$84.00CA$62.836
Sep ’24CA$71.43
CA$89.33
+25.1%
4.5%CA$96.00CA$84.00CA$63.206
Aug ’24CA$78.07
CA$87.80
+12.5%
5.7%CA$92.00CA$78.00CA$66.185
Jul ’24CA$69.62
CA$87.80
+26.1%
5.7%CA$92.00CA$78.00CA$66.495
Jun ’24CA$61.59
CA$87.80
+42.6%
5.7%CA$92.00CA$78.00CA$71.015
May ’24CA$65.10
CA$86.00
+32.1%
5.7%CA$92.00CA$78.00CA$64.315
Apr ’24CA$65.03
CA$86.00
+32.2%
5.7%CA$92.00CA$78.00CA$71.215
Mar ’24CA$74.70
CA$84.80
+13.5%
4.9%CA$92.00CA$80.00CA$65.775
Feb ’24CA$71.84
CA$80.60
+12.2%
2.9%CA$84.00CA$77.00CA$64.535
Jan ’24CA$61.30
CA$79.20
+29.2%
10.5%CA$90.00CA$65.00CA$64.025
Dec ’23CA$66.17
CA$76.20
+15.2%
8.4%CA$84.00CA$65.00CA$59.025
Nov ’23CA$58.82
CA$74.00
+25.8%
9.7%CA$84.00CA$62.00CA$60.335
Oct ’23CA$53.81
CA$78.00
+45.0%
9.6%CA$86.00CA$65.00CA$65.435

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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