Linamar Corporation

DB:LNR Stock Report

Market Cap: €2.6b

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 (€41.6) is trading below our estimate of fair value (€166.46)

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?

Key metric: As LNR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LNR. This is calculated by dividing LNR's market cap by their current earnings.
What is LNR's PE Ratio?
PE Ratio6.4x
EarningsCA$594.93m
Market CapCA$3.77b

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 Average19.4x
SHA0 Schaeffler
28.4x71.5%€4.1b
SFQ SAF-Holland
8x14.3%€619.2m
HLE HELLA GmbH KGaA
28.9x17.1%€9.5b
CON Continental
12.3x23.4%€12.4b
LNR Linamar
6.4xn/a€3.8b

Price-To-Earnings vs Peers: LNR is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LNR 6.4xIndustry Avg. 9.1xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LNR is good value based on its Price-To-Earnings Ratio (6.4x) compared to the European Auto Components industry average (9.1x).

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 Ratio6.4x
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
Current€41.60
€50.73
+22.0%
7.0%€56.82€46.00n/a6
Nov ’25€37.60
€54.36
+44.6%
6.7%€59.24€49.25n/a6
Oct ’25€41.80
€55.10
+31.8%
6.2%€58.97€49.03n/a6
Sep ’25€41.80
€55.81
+33.5%
7.0%€61.37€49.36n/a6
Aug ’25€46.00
€58.28
+26.7%
8.0%€63.76€49.66n/a6
Jul ’25€45.00
€59.34
+31.9%
8.5%€65.78€50.18n/a6
Jun ’25€46.80
€59.34
+26.8%
8.5%€65.78€50.18n/a6
May ’25€45.00
€56.07
+24.6%
7.7%€61.66€47.96n/a6
Apr ’25€49.00
€55.71
+13.7%
8.1%€62.10€47.51n/a6
Mar ’25€45.20
€56.88
+25.8%
8.4%€64.12€48.26n/a6
Feb ’25€43.80
€56.21
+28.3%
9.0%€63.90€48.10n/a5
Jan ’25€44.00
€56.67
+28.8%
9.0%€61.60€47.91n/a5
Dec ’24€38.80
€56.60
+45.9%
8.3%€61.12€47.54n/a6
Nov ’24€40.80
€60.73
+48.8%
4.5%€65.75€57.53€37.606
Oct ’24€45.40
€60.75
+33.8%
4.5%€65.29€57.12€41.806
Sep ’24€48.40
€60.75
+25.5%
4.5%€65.29€57.12€41.806
Aug ’24€52.50
€59.60
+13.5%
5.7%€62.45€52.95€46.005
Jul ’24€47.60
€59.60
+25.2%
5.7%€62.45€52.95€45.005
Jun ’24€41.20
€59.60
+44.7%
5.7%€62.45€52.95€46.805
May ’24€43.00
€58.66
+36.4%
5.7%€62.76€53.21€45.005
Apr ’24€42.60
€58.66
+37.7%
5.7%€62.76€53.21€49.005
Mar ’24€51.00
€58.49
+14.7%
4.9%€63.46€55.18€45.205
Feb ’24€46.60
€55.21
+18.5%
2.9%€57.54€52.75€43.805
Jan ’24€42.40
€54.79
+29.2%
10.5%€62.26€44.97€44.005
Dec ’23€47.00
€56.10
+19.4%
8.4%€61.85€47.86€38.805
Nov ’23€43.40
€55.01
+26.7%
9.7%€62.44€46.09€40.805

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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