Is Lear Corp. overvalued or undervalued?

As of 31 January 2025, Lear Corp. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 8, an EV to EBITDA of 4.49, and a Price to Book Value of 1.11. In comparison to peers, Aptiv Plc has a P/E of 7.26 and Autoliv, Inc. has a significantly higher P/E of 15.26, indicating that Lear Corp. is trading at a premium relative to some competitors despite its lower growth prospects.
Additionally, Lear Corp.'s recent stock performance has underperformed against the S&P 500, with a 1-year return of -21.59% compared to the index's 10.26%. This trend further supports the view that the stock is overvalued in the current market environment.