Lear Corporation

NYSE:LEA Stock Report

Market Cap: US$5.3b

Lear Valuation

Is LEA 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 LEA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LEA ($97.89) is trading below our estimate of fair value ($199.46)

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

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.

The above table shows the Price to Earnings ratio for LEA. This is calculated by dividing LEA's market cap by their current earnings.
What is LEA's PE Ratio?
PE Ratio9.7x
EarningsUS$545.80m
Market CapUS$5.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
MOD Modine Manufacturing
46x25.9%US$7.5b
GNTX Gentex
16.2x7.1%US$6.9b
DORM Dorman Products
22.9x10.6%US$4.3b
ALV Autoliv
12.4x14.0%US$7.8b
LEA Lear
9.7x19.9%US$5.3b

Price-To-Earnings vs Peers: LEA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CDTI CDTi Advanced Materials
2.2xn/aUS$2.25m
No more companies available in this PE range
LEA 9.7xIndustry Avg. 19.8xNo. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LEA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the US Auto Components industry average (19.8x).

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.

LEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.7x
Fair PE Ratio17.5x

Price-To-Earnings vs Fair Ratio: LEA is good value based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

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 LEA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$97.89
US$131.80
+34.6%
16.3%US$174.00US$101.00n/a13
Nov ’25US$96.72
US$134.10
+38.7%
17.6%US$174.00US$101.00n/a13
Oct ’25US$108.12
US$147.64
+36.6%
13.7%US$185.00US$114.00n/a13
Sep ’25US$116.65
US$148.10
+27.0%
12.6%US$185.00US$127.00n/a14
Aug ’25US$119.70
US$149.17
+24.6%
13.1%US$185.00US$127.00n/a14
Jul ’25US$114.29
US$160.45
+40.4%
13.9%US$205.00US$128.00n/a14
Jun ’25US$125.35
US$162.81
+29.9%
13.0%US$205.00US$128.00n/a14
May ’25US$124.37
US$162.60
+30.7%
13.8%US$210.00US$128.00n/a14
Apr ’25US$144.37
US$163.89
+13.5%
13.5%US$210.00US$134.00n/a14
Mar ’25US$136.42
US$164.56
+20.6%
13.1%US$210.00US$134.00n/a15
Feb ’25US$136.43
US$167.09
+22.5%
14.6%US$220.00US$130.00n/a16
Jan ’25US$141.21
US$167.23
+18.4%
13.9%US$220.00US$130.00n/a15
Dec ’24US$136.39
US$168.29
+23.4%
13.5%US$220.00US$136.00n/a15
Nov ’24US$130.25
US$168.23
+29.2%
13.0%US$220.00US$140.00US$96.7215
Oct ’24US$134.20
US$170.29
+26.9%
12.5%US$230.00US$140.00US$108.1215
Sep ’24US$145.98
US$170.26
+16.6%
13.2%US$230.00US$140.00US$116.6514
Aug ’24US$154.44
US$167.05
+8.2%
14.0%US$235.00US$140.00US$119.7014
Jul ’24US$143.55
US$157.69
+9.9%
9.4%US$182.00US$140.00US$114.2914
Jun ’24US$125.69
US$153.62
+22.2%
9.6%US$173.00US$133.00US$125.3514
May ’24US$126.90
US$152.50
+20.2%
9.4%US$173.00US$133.00US$124.3714
Apr ’24US$139.49
US$152.42
+9.3%
8.8%US$173.00US$135.00US$144.3715
Mar ’24US$141.36
US$153.02
+8.2%
9.8%US$180.00US$133.00US$136.4215
Feb ’24US$149.46
US$153.52
+2.7%
9.5%US$180.00US$133.00US$136.4314
Jan ’24US$124.02
US$152.15
+22.7%
10.5%US$185.00US$133.00US$141.2115
Dec ’23US$140.79
US$152.82
+8.5%
10.2%US$185.00US$133.00US$136.3915
Nov ’23US$133.56
US$154.03
+15.3%
11.0%US$185.00US$132.40US$130.2515

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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