Is Lear Corp. overvalued or undervalued?

As of 7 November 2025, Lear Corp. has moved from expensive to fair in its valuation grade. The company appears to be fairly valued based on its current metrics, with 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, Autoliv, Inc. has a significantly higher P/E of 18.06, while Allison Transmission Holdings, Inc. has a P/E of 9.98, indicating that Lear Corp. is positioned competitively within its industry.
Despite a challenging three-year return of -24.91%, which lags significantly behind the S&P 500's 76.76%, Lear Corp. has shown some resilience with a year-to-date return of 14.15%, closely matching the S&P 500's 14.40%. Overall, the valuation metrics suggest that Lear Corp. is fairly valued relative to its peers in the auto components sector.