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
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lear Corp. To summarize, we found that Lear Corp ranked in the 69th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 273.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Lear Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 10.78 -- which is good for besting 75.55% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Lear Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 14.81% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CROX, IGT, MYE, DRI, and BURL can be thought of as valuation peers to LEA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.