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 to be overvalued based on its current 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, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Lear Corp. has a P/E ratio of 9.51, which is lower than Autoliv, Inc. at 18.06 and higher than Allison Transmission Holdings, Inc. at 9.98, indicating that while it may be cheaper than some, it is still considered expensive overall. Additionally, Lear Corp.'s recent stock performance has lagged behind the S&P 500, with a year-to-date return of 5.03% compared to 13.30% for the index, reinforcing the notion of overvaluation.