Linamar Corporation (LNR.TO) 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

+80.9%

CA$163.60

vs CA$90.46 price

Levered DCF

CA$238.25

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.77

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	8.51×	13.52×	7.83×	9.19×	11.65×	15.79×	7.46×	5.01×
P/B	0.82×	0.64×	0.74×	0.81×	1.07×	1.01×	0.8×	0.78×
P/S	0.49×	0.33×	0.4×	0.49×	0.75×	0.76×	0.43×	0.39×
EV / EBITDA	4.07×	3.08×	3.93×	4.34×	4.59×	5.36×	4.52×	4.31×
Gross margin	14.8%	14.2%	13.6%	12.3%	14.3%	13.8%	14.4%	16.2%
Operating margin	8.7%	5.8%	8.0%	7.5%	9.2%	7.3%	8.4%	10.8%
Net margin	5.7%	2.4%	5.2%	5.4%	6.4%	4.8%	5.8%	7.8%
Current ratio	1.73×	1.85×	1.59×	1.71×	1.71×	1.25×	1.85×	2.01×
Debt / equity	0.34×	0.42×	0.33×	0.27×	0.17×	0.3×	0.47×	0.65×
Interest coverage	9.74×	4.82×	11.17×	20.99×	17.64×	5.9×	5.04×	11.98×
Dividend yield	1.3%	1.8%	1.4%	1.3%	0.9%	0.5%	1.0%	1.1%
Payout ratio	11.5%	23.8%	10.8%	12.0%	10.6%	8.4%	7.3%	5.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.6%	4.8%	9.5%	8.9%	9.1%	6.4%	10.7%	15.6%
Return on invested capital	7.6%	4.1%	7.5%	7.0%	7.9%	5.3%	7.6%	9.7%
Return on assets	5.4%	2.5%	5.1%	5.0%	5.7%	3.7%	5.7%	7.3%
Free cash flow yield	18.3%	17.0%	-0.4%	0.9%	13.6%	26.0%	18.7%	4.0%
Earnings yield	11.8%	7.4%	12.8%	10.9%	8.6%	6.3%	13.4%	20.0%
Enterprise value	CA$6.2B	CA$4.7B	CA$5.1B	CA$4.4B	CA$4.8B	CA$4.8B	CA$4.8B	CA$5B
Net debt / EBITDA	0.78×	0.81×	0.87×	0.45×	-0.13×	0.49×	1.48×	1.74×
Cash conversion cycle (days)	84	80	71	73	58	60	69	87