Lear Valuation
| LEA Stock | MXN 1,985 0.00 0.00% |
At this time, the firm appears to be undervalued. Lear secures a last-minute Real Value of 2168.5 per share. The latest price of the firm is 1985.0. Our model forecasts the value of Lear from analyzing the firm fundamentals such as Current Valuation of 185.92 B, profit margin of 0.02 %, and Return On Equity of 0.0848 as well as examining its technical indicators and probability of bankruptcy.
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 1985.0 | Real 2168.5 | Hype 1985.0 |
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, news, and other external factors that may influence Lear's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Lear Total Value Analysis
Lear Corporation is now forecasted to have takeover price of 185.92 B with market capitalization of 160.78 B, debt of 2.59 B, and cash on hands of 1.32 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Lear fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
185.92 B | 160.78 B | 2.59 B | 1.32 B |
Lear Investor Information
About 100.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.9. 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 0.38. The entity recorded earning per share (EPS) of 104.89. The firm last dividend was issued on the 6th of December 2022. Based on the analysis of Lear's profitability, liquidity, and operating efficiency, Lear Corporation is not in a good financial situation at the moment. It has a very high risk of going through financial straits in February.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 151.79 percent. This suggests that the Company is making 1.52 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
Lear Corporation holds a total of 59.13 Million outstanding shares. 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. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.Lear Profitability Analysis
The company reported the revenue of 20.89 B. Net Income was 327.7 M with profit before overhead, payroll, taxes, and interest of 1.55 B.About Lear Valuation
Our relative 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.Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. The company was founded in 1917 and is headquartered in Southfield, Michigan. LEAR CORP operates under Auto Parts classification in Mexico and is traded on Mexico Stock Exchange. It employs 169000 people.
8 Steps to conduct Lear's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lear's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Lear's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lear's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lear's revenue streams: Identify Lear's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lear's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lear's growth potential: Evaluate Lear's management, business model, and growth potential.
- Determine Lear's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Lear's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional 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.