Is Lear Corp. overvalued or undervalued?

As of 17 October 2025, Lear Corp. has moved from an attractive to an expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 8, which is significantly lower than peers like Autoliv, Inc. at 18.06 and Donaldson Co., Inc. at 28.15. Additionally, Lear Corp. has an EV to EBITDA ratio of 4.49, compared to Autoliv's 9.21, further indicating a relative overvaluation.
In terms of performance, Lear Corp. has underperformed against the S&P 500 over multiple periods, with a year-to-date return of 5.03% compared to the S&P 500's 13.30%. This trend continues over the longer term, with a 3-year return of -22.06% versus the S&P 500's impressive 81.19%. Overall, the combination of low valuation ratios and poor stock performance suggests that Lear Corp. is overvalued in the current market context.