Lear Corporation (LEA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-5.0%

$116.79

vs $122.98 price

Levered DCF

$184.57

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.79

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.94×	10.5×	14.51×	22.59×	29.41×	60.47×	10.72×	7.08×
P/B	1.21×	1.19×	1.69×	1.58×	2.37×	2.14×	1.95×	1.92×
P/S	0.26×	0.23×	0.35×	0.35×	0.57×	0.56×	0.43×	0.38×
EV / EBITDA	6.64×	5.72×	7.2×	8.15×	10.36×	11.9×	6.32×	4.05×
Gross margin	8.2%	7.9%	7.4%	7.5%	7.8%	7.7%	9.8%	11.6%
Operating margin	4.4%	4.1%	3.9%	3.7%	3.9%	3.5%	6.1%	8.1%
Net margin	1.9%	2.2%	2.4%	1.6%	1.9%	0.9%	4.0%	5.4%
Current ratio	1.35×	1.32×	1.35×	1.35×	1.42×	1.33×	1.37×	1.4×
Debt / equity	0.81×	0.92×	0.72×	0.71×	0.7×	0.64×	0.66×	0.47×
Interest coverage	10.39×	9.1×	9.26×	7.98×	8.32×	6.22×	13.35×	20.49×
Dividend yield	2.7%	3.3%	2.2%	2.5%	1.0%	0.7%	2.2%	2.3%
Payout ratio	37.7%	34.3%	31.8%	56.6%	28.5%	42.5%	23.6%	16.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.7%	11.4%	11.6%	7.0%	8.1%	3.5%	18.2%	27.1%
Return on invested capital	8.5%	8.2%	7.8%	6.6%	6.6%	5.2%	12.6%	19.3%
Return on assets	2.9%	3.6%	3.9%	2.4%	2.8%	1.2%	6.2%	9.8%
Free cash flow yield	8.7%	10.6%	7.5%	5.2%	0.8%	2.2%	8.0%	13.7%
Earnings yield	7.2%	9.5%	6.9%	4.4%	3.4%	1.7%	9.3%	14.1%
Enterprise value	$9.2B	$8.3B	$10.7B	$9.6B	$12.9B	$11.1B	$9.8B	$8.5B
Net debt / EBITDA	2.22×	2.08×	1.59×	1.89×	1.54×	1.66×	0.87×	0.22×
Cash conversion cycle (days)	32	28	29	29	29	30	23	17