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:
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 13th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Lear Corp ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 81. Its equity weight surpasses that of 66.8% of free cash flow generating stocks in the Consumer Cyclical sector.
The company's compound free cash flow growth rate over the past 5.52 years comes in at -0.1%; that's greater than only 13.71% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LEA, try VOXX, BJRI, DIN, EVC, and HLT.
* Partnership to allow consumers to complete transactions by voice with a variety of popular brands * Companies plan to further enhance the in-vehicle experience by integrating Cerence Drive with the Xevo Glass infotainment platformBURLINGTON, Mass., and BELLEVUE, Wash., Jan. 14, 2021 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, and Xevo, a part of Lear Corporation (NYSE: LEA) and a global leader in connected car software, today announced that they have formed a strategic collaboration to deliver Cerence Pay conversational AI-powered contactless payment capabilities into vehicles via the Xevo Market commerce and services platform. Xevo Market, already live in millions of connected vehicles on the road today, enables ordering, completing transactions, and...
Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, will hold a conference call to review the company's fourth quarter and full year 2020 financial results and related matters on February 4, 2021, at 8:30 a.m. EST.
BELLEVUE, Wash., Jan. 11, 2021 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today announced that its Xevo software business has partnered with Grubhub, a leading food-ordering and delivery marketplace, to deliver safer,…