Is Lear Corp. overvalued or undervalued?

As of 7 November 2025, Lear Corp. has moved from expensive to fair in valuation grade. The company appears to be fairly valued 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 reasonable valuation compared to its earnings and asset base.
In comparison to peers, Lear Corp. has a lower P/E ratio than Autoliv, Inc. at 18.06 and Allison Transmission Holdings, Inc. at 9.98, indicating that it may be undervalued relative to some competitors. However, it is also worth noting that its EV to EBITDA ratio is lower than the industry average, which could imply a more attractive valuation. Over the past year, Lear Corp. has returned 13.56%, slightly outperforming the S&P 500's return of 12.65%, reinforcing the notion that the stock is fairly valued in the current market environment.