Intrinsic value of Lear Corp. - LEA

Previous Close

$173.74

  Intrinsic Value

$1,352

stock screener

  Rating & Target

str. buy

+678%

  Value-price divergence*

+222%

Previous close

$173.74

 
Intrinsic value

$1,352

 
Up/down potential

+678%

 
Rating

str. buy

 
Value-price divergence*

+222%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of LEA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  1.91
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
Revenue, $m
  18,558
  20,117
  21,738
  23,424
  25,176
  26,996
  28,888
  30,854
  32,899
  35,025
  37,238
  39,541
  41,940
  44,440
  47,046
  49,764
  52,601
  55,562
  58,655
  61,887
  65,266
  68,799
  72,495
  76,362
  80,410
  84,649
  89,088
  93,738
  98,611
  103,717
  109,068
Variable operating expenses, $m
 
  3,773
  4,068
  4,374
  4,693
  5,024
  5,369
  5,726
  6,098
  6,485
  6,888
  7,195
  7,631
  8,086
  8,560
  9,055
  9,571
  10,110
  10,673
  11,261
  11,876
  12,519
  13,191
  13,895
  14,631
  15,403
  16,210
  17,057
  17,943
  18,872
  19,846
Fixed operating expenses, $m
 
  14,366
  14,726
  15,094
  15,471
  15,858
  16,254
  16,661
  17,077
  17,504
  17,942
  18,390
  18,850
  19,321
  19,804
  20,299
  20,807
  21,327
  21,860
  22,407
  22,967
  23,541
  24,130
  24,733
  25,351
  25,985
  26,635
  27,300
  27,983
  28,682
  29,400
Total operating expenses, $m
  17,137
  18,139
  18,794
  19,468
  20,164
  20,882
  21,623
  22,387
  23,175
  23,989
  24,830
  25,585
  26,481
  27,407
  28,364
  29,354
  30,378
  31,437
  32,533
  33,668
  34,843
  36,060
  37,321
  38,628
  39,982
  41,388
  42,845
  44,357
  45,926
  47,554
  49,246
Operating income, $m
  1,421
  1,978
  2,945
  3,956
  5,012
  6,114
  7,265
  8,467
  9,723
  11,036
  12,408
  13,956
  15,459
  17,032
  18,681
  20,410
  22,223
  24,125
  26,122
  28,220
  30,423
  32,739
  35,174
  37,735
  40,428
  43,261
  46,243
  49,381
  52,685
  56,162
  59,823
EBITDA, $m
  1,799
  2,363
  3,352
  4,386
  5,465
  6,592
  7,769
  8,998
  10,282
  11,623
  13,025
  14,492
  16,027
  17,635
  19,319
  21,085
  22,936
  24,879
  26,918
  29,059
  31,308
  33,672
  36,157
  38,770
  41,519
  44,410
  47,452
  50,653
  54,022
  57,569
  61,302
Interest expense (income), $m
  89
  87
  114
  141
  169
  199
  229
  261
  294
  329
  365
  402
  441
  481
  523
  567
  613
  661
  711
  763
  817
  874
  934
  996
  1,061
  1,130
  1,201
  1,276
  1,354
  1,436
  1,522
Earnings before tax, $m
  1,338
  1,891
  2,832
  3,815
  4,842
  5,915
  7,036
  8,206
  9,429
  10,707
  12,043
  13,554
  15,018
  16,551
  18,158
  19,842
  21,609
  23,464
  25,411
  27,457
  29,606
  31,865
  34,240
  36,738
  39,367
  42,132
  45,042
  48,106
  51,330
  54,726
  58,301
Tax expense, $m
  370
  510
  765
  1,030
  1,307
  1,597
  1,900
  2,216
  2,546
  2,891
  3,252
  3,660
  4,055
  4,469
  4,903
  5,357
  5,835
  6,335
  6,861
  7,413
  7,994
  8,604
  9,245
  9,919
  10,629
  11,376
  12,161
  12,988
  13,859
  14,776
  15,741
Net income, $m
  975
  1,380
  2,067
  2,785
  3,535
  4,318
  5,136
  5,990
  6,883
  7,816
  8,792
  9,894
  10,963
  12,082
  13,255
  14,485
  15,775
  17,129
  18,550
  20,043
  21,612
  23,261
  24,995
  26,819
  28,738
  30,756
  32,881
  35,117
  37,471
  39,950
  42,559

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,272
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,901
  9,352
  10,106
  10,890
  11,704
  12,550
  13,430
  14,344
  15,295
  16,283
  17,312
  18,383
  19,498
  20,660
  21,872
  23,135
  24,454
  25,831
  27,269
  28,771
  30,342
  31,985
  33,703
  35,501
  37,383
  39,353
  41,417
  43,579
  45,844
  48,218
  50,706
Adjusted assets (=assets-cash), $m
  8,629
  9,352
  10,106
  10,890
  11,704
  12,550
  13,430
  14,344
  15,295
  16,283
  17,312
  18,383
  19,498
  20,660
  21,872
  23,135
  24,454
  25,831
  27,269
  28,771
  30,342
  31,985
  33,703
  35,501
  37,383
  39,353
  41,417
  43,579
  45,844
  48,218
  50,706
Revenue / Adjusted assets
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
  2.151
Average production assets, $m
  2,194
  2,374
  2,565
  2,764
  2,971
  3,186
  3,409
  3,641
  3,882
  4,133
  4,394
  4,666
  4,949
  5,244
  5,551
  5,872
  6,207
  6,556
  6,921
  7,303
  7,701
  8,118
  8,554
  9,011
  9,488
  9,989
  10,512
  11,061
  11,636
  12,239
  12,870
Working capital, $m
  1,467
  262
  283
  305
  327
  351
  376
  401
  428
  455
  484
  514
  545
  578
  612
  647
  684
  722
  763
  805
  848
  894
  942
  993
  1,045
  1,100
  1,158
  1,219
  1,282
  1,348
  1,418
Total debt, $m
  1,942
  2,468
  3,062
  3,679
  4,321
  4,988
  5,681
  6,401
  7,150
  7,929
  8,740
  9,584
  10,462
  11,378
  12,333
  13,329
  14,368
  15,453
  16,586
  17,770
  19,008
  20,302
  21,656
  23,073
  24,556
  26,108
  27,735
  29,438
  31,223
  33,094
  35,054
Total liabilities, $m
  6,843
  7,370
  7,964
  8,581
  9,223
  9,890
  10,583
  11,303
  12,052
  12,831
  13,642
  14,486
  15,364
  16,280
  17,235
  18,231
  19,270
  20,355
  21,488
  22,672
  23,910
  25,204
  26,558
  27,975
  29,458
  31,010
  32,637
  34,340
  36,125
  37,996
  39,956
Total equity, $m
  3,057
  1,983
  2,143
  2,309
  2,481
  2,661
  2,847
  3,041
  3,242
  3,452
  3,670
  3,897
  4,134
  4,380
  4,637
  4,905
  5,184
  5,476
  5,781
  6,100
  6,433
  6,781
  7,145
  7,526
  7,925
  8,343
  8,780
  9,239
  9,719
  10,222
  10,750
Total liabilities and equity, $m
  9,900
  9,353
  10,107
  10,890
  11,704
  12,551
  13,430
  14,344
  15,294
  16,283
  17,312
  18,383
  19,498
  20,660
  21,872
  23,136
  24,454
  25,831
  27,269
  28,772
  30,343
  31,985
  33,703
  35,501
  37,383
  39,353
  41,417
  43,579
  45,844
  48,218
  50,706
Debt-to-equity ratio
  0.635
  1.240
  1.430
  1.590
  1.740
  1.870
  2.000
  2.100
  2.210
  2.300
  2.380
  2.460
  2.530
  2.600
  2.660
  2.720
  2.770
  2.820
  2.870
  2.910
  2.950
  2.990
  3.030
  3.070
  3.100
  3.130
  3.160
  3.190
  3.210
  3.240
  3.260
Adjusted equity ratio
  0.208
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  975
  1,380
  2,067
  2,785
  3,535
  4,318
  5,136
  5,990
  6,883
  7,816
  8,792
  9,894
  10,963
  12,082
  13,255
  14,485
  15,775
  17,129
  18,550
  20,043
  21,612
  23,261
  24,995
  26,819
  28,738
  30,756
  32,881
  35,117
  37,471
  39,950
  42,559
Depreciation, amort., depletion, $m
  378
  385
  407
  430
  454
  478
  504
  531
  558
  587
  617
  536
  569
  603
  638
  675
  713
  754
  796
  839
  885
  933
  983
  1,036
  1,091
  1,148
  1,208
  1,271
  1,337
  1,407
  1,479
Funds from operations, $m
  1,732
  1,765
  2,474
  3,215
  3,988
  4,796
  5,640
  6,521
  7,441
  8,403
  9,409
  10,431
  11,532
  12,685
  13,893
  15,160
  16,488
  17,882
  19,346
  20,883
  22,497
  24,195
  25,979
  27,855
  29,828
  31,904
  34,089
  36,388
  38,809
  41,356
  44,039
Change in working capital, $m
  113
  20
  21
  22
  23
  24
  25
  26
  27
  28
  29
  30
  31
  32
  34
  35
  37
  38
  40
  42
  44
  46
  48
  50
  53
  55
  58
  60
  63
  66
  70
Cash from operations, $m
  1,619
  1,745
  2,453
  3,193
  3,966
  4,773
  5,615
  6,495
  7,415
  8,376
  9,380
  10,401
  11,501
  12,652
  13,859
  15,125
  16,451
  17,844
  19,306
  20,841
  22,454
  24,149
  25,931
  27,805
  29,776
  31,849
  34,031
  36,328
  38,745
  41,290
  43,969
Maintenance CAPEX, $m
  0
  -252
  -273
  -295
  -318
  -341
  -366
  -392
  -418
  -446
  -475
  -505
  -536
  -569
  -603
  -638
  -675
  -713
  -754
  -796
  -839
  -885
  -933
  -983
  -1,036
  -1,091
  -1,148
  -1,208
  -1,271
  -1,337
  -1,407
New CAPEX, $m
  -528
  -180
  -191
  -199
  -207
  -215
  -223
  -232
  -241
  -251
  -261
  -272
  -283
  -295
  -308
  -321
  -335
  -349
  -365
  -381
  -399
  -417
  -436
  -456
  -478
  -500
  -524
  -549
  -575
  -603
  -632
Cash from investing activities, $m
  -637
  -432
  -464
  -494
  -525
  -556
  -589
  -624
  -659
  -697
  -736
  -777
  -819
  -864
  -911
  -959
  -1,010
  -1,062
  -1,119
  -1,177
  -1,238
  -1,302
  -1,369
  -1,439
  -1,514
  -1,591
  -1,672
  -1,757
  -1,846
  -1,940
  -2,039
Free cash flow, $m
  982
  1,313
  1,989
  2,699
  3,441
  4,216
  5,026
  5,872
  6,755
  7,678
  8,644
  9,624
  10,681
  11,789
  12,949
  14,166
  15,442
  16,781
  18,187
  19,664
  21,215
  22,846
  24,561
  26,365
  28,262
  30,259
  32,360
  34,571
  36,899
  39,350
  41,931
Issuance/(repayment) of debt, $m
  -13
  571
  594
  618
  642
  667
  693
  720
  749
  779
  811
  844
  879
  916
  955
  996
  1,039
  1,085
  1,133
  1,184
  1,238
  1,294
  1,354
  1,417
  1,483
  1,553
  1,626
  1,704
  1,785
  1,871
  1,961
Issuance/(repurchase) of shares, $m
  -659
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -784
  571
  594
  618
  642
  667
  693
  720
  749
  779
  811
  844
  879
  916
  955
  996
  1,039
  1,085
  1,133
  1,184
  1,238
  1,294
  1,354
  1,417
  1,483
  1,553
  1,626
  1,704
  1,785
  1,871
  1,961
Total cash flow (excl. dividends), $m
  164
  1,884
  2,583
  3,317
  4,083
  4,883
  5,719
  6,592
  7,504
  8,457
  9,455
  10,468
  11,560
  12,704
  13,904
  15,161
  16,481
  17,866
  19,320
  20,848
  22,453
  24,141
  25,915
  27,782
  29,745
  31,811
  33,986
  36,274
  38,684
  41,221
  43,892
Retained Cash Flow (-), $m
  -130
  -153
  -160
  -166
  -173
  -179
  -186
  -194
  -201
  -210
  -218
  -227
  -236
  -246
  -257
  -268
  -280
  -292
  -305
  -319
  -333
  -348
  -364
  -381
  -399
  -418
  -438
  -458
  -480
  -503
  -527
Prev. year cash balance distribution, $m
 
  1,227
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,958
  2,423
  3,151
  3,910
  4,704
  5,533
  6,398
  7,302
  8,248
  9,236
  10,241
  11,324
  12,458
  13,647
  14,894
  16,201
  17,574
  19,015
  20,529
  22,120
  23,793
  25,551
  27,401
  29,346
  31,394
  33,548
  35,816
  38,204
  40,717
  43,364
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  2,836
  2,218
  2,742
  3,220
  3,646
  4,015
  4,322
  4,564
  4,738
  4,842
  4,863
  4,832
  4,737
  4,582
  4,372
  4,117
  3,824
  3,502
  3,161
  2,811
  2,461
  2,120
  1,796
  1,495
  1,221
  979
  769
  591
  444
  327
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company's segments include Seating and E-Systems. The Company serves the automotive and light truck market. The Seating segment consists of the design, development, engineering, just-in-time assembly and delivery of complete seat systems, as well as the design, development, engineering and manufacture of all seat components, including seat covers and surface materials, such as leather and fabric, seat structures and mechanisms, seat foam and headrests. The E-Systems segment consists of the design, development, engineering, manufacture, assembly and supply of electrical distribution systems, electronic modules and related components and software for light vehicles across the world.

FINANCIAL RATIOS  of  Lear Corp. (LEA)

Valuation Ratios
P/E Ratio 12.4
Price to Sales 0.7
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow 11.1
Growth Rates
Sales Growth Rate 1.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 8.6%
Cap. Spend. - 3 Yr. Gr. Rate 2.8%
Financial Strength
Quick Ratio 28
Current Ratio 0.1
LT Debt to Equity 62.1%
Total Debt to Equity 63.5%
Interest Coverage 16
Management Effectiveness
Return On Assets 10.8%
Ret/ On Assets - 3 Yr. Avg. 9.3%
Return On Total Capital 19.7%
Ret/ On T. Cap. - 3 Yr. Avg. 16.9%
Return On Equity 32.6%
Return On Equity - 3 Yr. Avg. 26.8%
Asset Turnover 1.9
Profitability Ratios
Gross Margin 11.6%
Gross Margin - 3 Yr. Avg. 10.3%
EBITDA Margin 9.7%
EBITDA Margin - 3 Yr. Avg. 8.1%
Operating Margin 7.7%
Oper. Margin - 3 Yr. Avg. 6.2%
Pre-Tax Margin 7.2%
Pre-Tax Margin - 3 Yr. Avg. 5.8%
Net Profit Margin 5.3%
Net Profit Margin - 3 Yr. Avg. 4.4%
Effective Tax Rate 27.7%
Eff/ Tax Rate - 3 Yr. Avg. 23.6%
Payout Ratio 9.1%

LEA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LEA stock intrinsic value calculation we used $18558 million for the last fiscal year's total revenue generated by Lear Corp.. The default revenue input number comes from 2016 income statement of Lear Corp.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our LEA stock valuation model: a) initial revenue growth rate of 8.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for LEA is calculated based on our internal credit rating of Lear Corp., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Lear Corp..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of LEA stock the variable cost ratio is equal to 18.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $14016 million in the base year in the intrinsic value calculation for LEA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.6% for Lear Corp..

Corporate tax rate of 27% is the nominal tax rate for Lear Corp.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the LEA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for LEA are equal to 11.8%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Lear Corp. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for LEA is equal to 1.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3057 million for Lear Corp. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 67.179 million for Lear Corp. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Lear Corp. at the current share price and the inputted number of shares is $11.7 billion.

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COMPANY NEWS

▶ New Strong Buy Stocks for October 19th   [Oct-19-17 09:19AM  Zacks]
▶ Lear Corporation Breaks Ground on New Facility in Flint   [Oct-02-17 01:30PM  Business Wire]
▶ Autoliv Skyrockets On Autonomous-Driving Spinoff Plan   [Sep-14-17 04:02PM  Investor's Business Daily]
▶ Michigan moves to snag 1,500 jobs for Flint, other cities   [Aug-22-17 03:31PM  Associated Press]
▶ Lear Announces Closing of Refinancing Transactions   [Aug-17-17 11:32AM  PR Newswire]
▶ Lear Announces Offering of Senior Notes   [10:02AM  PR Newswire]
▶ Lear Declares Quarterly Cash Dividend   [Aug-10-17 11:21AM  PR Newswire]
▶ ETFs with exposure to Lear Corp. : August 8, 2017   [Aug-08-17 04:44PM  Capital Cube]
▶ Lear Refinances Credit Agreement   [04:15PM  PR Newswire]
▶ Story Stocks from Briefing.com   [Jul-26-17 12:28PM  Briefing.com]
▶ ETFs with exposure to Lear Corp. : July 24, 2017   [Jul-24-17 04:58PM  Capital Cube]
▶ ETFs with exposure to Lear Corp. : July 14, 2017   [Jul-14-17 03:18PM  Capital Cube]
▶ Lear Corp. Value Analysis (NYSE:LEA) : June 20, 2017   [Jun-20-17 03:57PM  Capital Cube]
▶ [$$] US car sector hit after analysts lower sales outlook   [Jun-08-17 06:57PM  Financial Times]
▶ Top 5 ROE Stocks to Buy as Markets Rebound   [May-23-17 09:13AM  Zacks]
▶ Lear Declares Quarterly Cash Dividend   [May-18-17 01:35PM  PR Newswire]
▶ ETFs with exposure to Lear Corp. : April 26, 2017   [Apr-26-17 03:25PM  Capital Cube]
▶ Lear tops Street 1Q forecasts   [07:26AM  Associated Press]
▶ Lear Corp. Value Analysis (NYSE:LEA) : April 24, 2017   [Apr-24-17 03:33PM  Capital Cube]
▶ Three Reasons The Bears Are Wrong About Lear Corp.   [Apr-20-17 01:56PM  Barrons.com]
Financial statements of LEA
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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