Lear Valuation
| LEA Stock | USD 95.61 0.45 0.47% |
At this time, the firm appears to be undervalued. Lear secures a last-minute Real Value of $118.31 per share. The latest price of the firm is $95.61. Our model forecasts the value of Lear from analyzing the firm fundamentals such as Return On Equity of 0.13, current valuation of 7.23 B, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Lear's valuation include:
Price Book 1.0903 | Enterprise Value 7.2 B | Enterprise Value Ebitda 4.9154 | Price Sales 0.2217 | Forward PE 6.6979 |
Undervalued
Today
Please note that Lear's price fluctuation is very steady at this time. Calculation of the real value of Lear is based on 3 months time horizon. Increasing Lear's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Lear is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lear Stock. However, Lear's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 95.61 | Real 118.31 | Target 166.83 | Hype 94.67 | Naive 99.18 |
The real value of Lear Stock, also known as its intrinsic value, is the underlying worth of Lear Company, which is reflected in its stock price. It is based on Lear's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Lear's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Lear Corporation helps investors to forecast how Lear stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lear more accurately as focusing exclusively on Lear's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lear's intrinsic value based on its ongoing forecasts of Lear's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lear's closest peers. If more than one evaluation category is relevant for Lear we suggest using both methods to arrive at a better estimate.
Lear Cash |
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Lear Valuation Trend
Comparing Lear's enterprise value against its market capitalization is a good way to estimate the value of Lear Corporation uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Lear Revenue by Product
Lear Total Value Analysis
Lear Corporation is now forecasted to have company total value of 7.23 B with market capitalization of 5.2 B, debt of 2.92 B, and cash on hands of 1.11 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Lear fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.23 B | 5.2 B | 2.92 B | 1.11 B |
Lear Investor Information
About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.09. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lear has Price/Earnings To Growth (PEG) ratio of 0.36. The entity recorded earning per share (EPS) of 9.51. The firm last dividend was issued on the 4th of September 2024. Lear had 2:1 split on the 18th of March 2011. Based on the analysis of Lear's profitability, liquidity, and operating efficiency, Lear Corporation may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0369 | 0.067 |
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| Total Cash From Operating Activities | 782.9 M | 1.2 B |
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| Operating Income | 1.7 B | 1.6 B |
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Lear Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lear has an asset utilization ratio of 159.69 percent. This suggests that the Company is making $1.6 for each dollar of assets. An increasing asset utilization means that Lear Corporation is more efficient with each dollar of assets it utilizes for everyday operations.Lear Ownership Allocation
The majority of Lear outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Lear Corporation to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Lear. Please pay attention to any change in the institutional holdings of Lear as this could imply that something significant has changed or is about to change at the company. Please note that on November 11, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Lear's common stock.Lear Profitability Analysis
The company reported the last year's revenue of 23.47 B. Total Income to common stockholders was 645.7 M with profit before taxes, overhead, and interest of 1.55 B.Lear Past Distributions to stockholders
| 23rd of September 2024 | ||
| 25th of June 2024 | ||
| 27th of March 2024 | ||
| 26th of December 2023 | ||
| 19th of September 2023 | ||
| 28th of June 2023 | ||
| 29th of March 2023 | ||
| 27th of December 2022 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lear's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lear and how it compares across the competition.
About Lear Valuation
The stock valuation mechanism determines Lear's current worth on a weekly basis. Our valuation model uses a comparative analysis of Lear. We calculate exposure to Lear's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Lear's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.8 B | 1.4 B | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.07 | 0.04 | |
| Net Profit Margin | 0.02 | 0.02 | |
| Gross Profit Margin | 0.08 | 0.10 |
A single share of Lear represents a small ownership stake in the entity. As a stockholder of Lear, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Lear Dividends Analysis For Valuation
At present, Lear's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.33, whereas Dividends Paid is forecasted to decline to about 100.2 M. . At present, Lear's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 25.04, whereas Retained Earnings Total Equity is forecasted to decline to about 3.8 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 181.9 M | 100.2 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.32 | 0.33 | |
| Dividend Paid And Capex Coverage Ratio | 1.55 | 1.18 |
There are various types of dividends Lear can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lear shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lear Corporation directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lear pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lear by the value of the dividends paid out.
Lear Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 59.1 M | |
| Quarterly Earnings Growth Y O Y | 0.071 | |
| Forward Price Earnings | 6.6979 |
Lear Current Valuation Indicators
Valuation refers to the process of determining the present value of Lear Corporation and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lear we look at many different elements of the entity such as Lear's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lear, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lear's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lear's worth.Complementary Tools for Lear Stock analysis
When running Lear's price analysis, check to measure Lear's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lear is operating at the current time. Most of Lear's value examination focuses on studying past and present price action to predict the probability of Lear's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lear's price. Additionally, you may evaluate how the addition of Lear to your portfolios can decrease your overall portfolio volatility.
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