Lear Corporation Stock Market Value
| LEA Stock | USD 97.84 0.59 0.61% |
| Symbol | Lear |
Lear Price To Book Ratio
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lear. If investors know Lear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lear listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.071 | Dividend Share 3.08 | Earnings Share 9.51 | Revenue Per Share 410.529 | Quarterly Revenue Growth (0.03) |
The market value of Lear is measured differently than its book value, which is the value of Lear that is recorded on the company's balance sheet. Investors also form their own opinion of Lear's value that differs from its market value or its book value, called intrinsic value, which is Lear's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lear's market value can be influenced by many factors that don't directly affect Lear's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lear's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lear is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lear's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Lear 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Lear's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Lear.
| 06/10/2023 |
| 12/01/2024 |
If you would invest 0.00 in Lear on June 10, 2023 and sell it all today you would earn a total of 0.00 from holding Lear Corporation or generate 0.0% return on investment in Lear over 540 days. Lear is related to or competes with Fox Factory, LKQ, Dorman Products, Stoneridge, Autoliv, American Axle, and Adient PLC. Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical ... More
Lear Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Lear's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Lear Corporation upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.19) | |||
| Maximum Drawdown | 9.76 | |||
| Value At Risk | (3.53) | |||
| Potential Upside | 3.0 |
Lear Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lear's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lear's standard deviation. In reality, there are many statistical measures that can use Lear historical prices to predict the future Lear's volatility.| Risk Adjusted Performance | (0.08) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (0.56) | |||
| Treynor Ratio | (0.19) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Lear's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Lear Backtested Returns
Lear has Sharpe Ratio of -0.11, which conveys that the firm had a -0.11% return per unit of risk over the last 3 months. Lear exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lear's Standard Deviation of 1.95, risk adjusted performance of (0.08), and Mean Deviation of 1.49 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 1.26, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lear will likely underperform. At this point, Lear has a negative expected return of -0.21%. Please make sure to verify Lear's treynor ratio, skewness, and the relationship between the jensen alpha and value at risk , to decide if Lear performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.56 |
Modest predictability
Lear Corporation has modest predictability. Overlapping area represents the amount of predictability between Lear time series from 10th of June 2023 to 6th of March 2024 and 6th of March 2024 to 1st of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Lear price movement. The serial correlation of 0.56 indicates that roughly 56.0% of current Lear price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.56 | |
| Spearman Rank Test | 0.52 | |
| Residual Average | 0.0 | |
| Price Variance | 179.9 |
Lear lagged returns against current returns
Autocorrelation, which is Lear stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Lear's stock expected returns. We can calculate the autocorrelation of Lear returns to help us make a trade decision. For example, suppose you find that Lear has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Lear regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Lear stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lear stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lear stock over time.
Current vs Lagged Prices |
| Timeline |
Lear Lagged Returns
When evaluating Lear's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lear stock have on its future price. Lear autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Lear autocorrelation shows the relationship between Lear stock current value and its past values and can show if there is a momentum factor associated with investing in Lear Corporation.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Lear offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lear's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lear Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lear Corporation Stock:Check out Lear Correlation, Lear Volatility and Lear Alpha and Beta module to complement your research on Lear. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Lear technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.