Lear Corporation (LEA): Price and Financial Metrics

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LEA Price/Volume Stats

Lear Corporation (LEA) Company Bio

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, electrical distribution systems, and related components primarily to automotive original equipment manufacturers worldwide. It operates through two segments, Seating and Electrical. The company was founded in 1917 and is based in Southfield, Michigan.

LEA Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Lear Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lear Corp ranked in the 10th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Lear Corp ended up being:

• Its compound free cash flow growth rate, as measured over the past 5.56 years, is -0.2% -- higher than merely 8.56% of stocks in our DCF forecasting set.
• Lear Corp's weighted average cost of capital (WACC) is 9%; for context, that number is higher than only 21.41% of tickers in our DCF set.
• As a business, Lear Corp experienced a tax rate of about 21% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 73.6% of stocks generating free cash flow.

For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LEA, try AUVI, BLL, BVH, CHH, and HLT.