Lear Valuation
Is LEA * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
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 LEA * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LEA * (MX$2719) is trading below our estimate of fair value (MX$2782.07)
Significantly Below Fair Value: LEA * is trading below fair value, but not by a significant amount.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LEA *?
Key metric: As LEA * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is LEA *'s PE Ratio? | |
|---|---|
| PE Ratio | 23.1x |
| Earnings | US$0 |
| Market Cap | US$7.57b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.4x |
| Enterprise Value/EBITDA | 6.7x |
| PEG Ratio | 0.9x |
Price to Earnings Ratio vs Peers
How does LEA *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 8.1x | ||
NEMAK A Nemak S. A. B. de C. V | 5.1x | 30.6% | Mex$5.1b |
600741 HUAYU Automotive Systems | 7.7x | -2.8% | CN¥53.4b |
ALV Autoliv | 12x | 13.9% | US$7.7b |
BWA BorgWarner | 7.9x | 4.8% | US$7.5b |
LEA * Lear | 23.1x | 1.7% | Mex$7.6b |
Price-To-Earnings vs Peers: LEA * is good value based on its Price-To-Earnings Ratio (23.1x) compared to the peer average (44.8x).
Price to Earnings Ratio vs Industry
How does LEA *'s PE Ratio compare vs other companies in the Global Auto Components Industry?
| 31 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 31 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: LEA * is expensive based on its Price-To-Earnings Ratio (23.1x) compared to the Global Auto Components industry average (18.7x).
Price to Earnings Ratio vs Fair Ratio
What is LEA *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 23.1x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LEA *'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?
Analyst Forecast: Insufficient data to show price forecast.
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