Latest Ratios: P/E Ratio 16.1x · EV/EBITDA 6.0x · ROE 8.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.6B | $6.1B | $5.3B | $8.3B | $7.4B | $11.1B | $9.6B | $8.5B | $8.1B | $12.2B | $9.7B |
| Enterprise Value | $9.7B | $9.2B | $8.4B | $10.7B | $9.7B | $13.0B | $11.2B | $9.9B | $8.6B | $12.7B | $10.4B |
| P/E Ratio → | 16.12 | 14.06 | 10.56 | 14.59 | 22.67 | 29.56 | 60.70 | 10.76 | 7.13 | 9.50 | 9.93 |
| P/S Ratio | 0.29 | 0.26 | 0.23 | 0.36 | 0.36 | 0.57 | 0.56 | 0.43 | 0.38 | 0.60 | 0.52 |
| P/B Ratio | 1.35 | 1.18 | 1.16 | 1.65 | 1.54 | 2.30 | 2.08 | 1.84 | 1.80 | 2.75 | 3.03 |
| P/FCF | 12.61 | 11.65 | 9.53 | 13.40 | 19.39 | 130.05 | 45.59 | 12.49 | 7.37 | 10.30 | 8.87 |
| P/OCF | 6.11 | 5.64 | 4.77 | 6.68 | 7.28 | 16.50 | 14.49 | 6.62 | 4.57 | 6.86 | 5.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.40 | 0.36 | 0.46 | 0.46 | 0.67 | 0.66 | 0.50 | 0.41 | 0.62 | 0.56 |
| EV / EBITDA | 5.97 | 5.66 | 5.35 | 7.06 | 7.18 | 9.85 | 9.76 | 5.72 | 3.89 | 5.94 | 5.29 |
| EV / EBIT | 9.50 | 9.01 | 10.01 | 12.21 | 15.95 | 19.29 | 28.17 | 9.44 | 5.29 | 7.89 | 7.28 |
| EV / FCF | — | 17.47 | 14.92 | 17.17 | 25.21 | 152.70 | 52.98 | 14.49 | 7.79 | 10.68 | 9.49 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 8.2% | 8.2% | 7.9% | 7.4% | 7.5% | 7.8% | 7.7% | 9.8% | 11.6% | 11.4% | 11.8% |
| Operating Margin | 4.4% | 4.4% | 4.1% | 3.9% | 3.7% | 3.9% | 3.5% | 6.1% | 8.1% | 8.4% | 8.5% |
| Net Profit Margin | 1.9% | 1.9% | 2.2% | 2.4% | 1.6% | 1.9% | 0.9% | 4.0% | 5.4% | 6.3% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.9% | 8.9% | 10.5% | 11.6% | 6.8% | 7.9% | 3.4% | 17.3% | 25.4% | 33.7% | 31.4% |
| ROA | 3.0% | 3.0% | 3.5% | 4.0% | 2.4% | 2.8% | 1.2% | 6.5% | 9.7% | 11.8% | 10.1% |
| ROIC | 9.7% | 9.7% | 9.4% | 9.5% | 8.4% | 8.6% | 7.5% | 16.6% | 26.1% | 29.2% | 31.0% |
| ROCE | 11.5% | 11.5% | 10.7% | 10.4% | 8.9% | 8.9% | 7.5% | 16.1% | 24.3% | 26.7% | 28.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.89 | 0.70 | 0.69 | 0.67 | 0.62 | 0.62 | 0.43 | 0.44 | 0.61 |
| Debt / EBITDA | 2.52 | 2.52 | 2.61 | 2.34 | 2.49 | 2.46 | 2.51 | 1.66 | 0.89 | 0.92 | 0.99 |
| Net Debt / Equity | — | 0.59 | 0.66 | 0.46 | 0.46 | 0.40 | 0.34 | 0.29 | 0.10 | 0.10 | 0.21 |
| Net Debt / EBITDA | 1.89 | 1.89 | 1.93 | 1.55 | 1.66 | 1.46 | 1.36 | 0.79 | 0.21 | 0.22 | 0.34 |
| Debt / FCF | — | 5.82 | 5.39 | 3.77 | 5.82 | 22.65 | 7.39 | 2.00 | 0.42 | 0.39 | 0.61 |
| Interest Coverage | 10.39 | 10.39 | 8.06 | 8.87 | 6.29 | 7.53 | 4.08 | 11.49 | 19.29 | 19.24 | 17.22 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.35 | 1.35 | 1.32 | 1.35 | 1.35 | 1.42 | 1.33 | 1.37 | 1.40 | 1.36 | 1.35 |
| Quick Ratio | 1.05 | 1.05 | 1.02 | 1.04 | 1.04 | 1.09 | 1.06 | 1.10 | 1.13 | 1.11 | 1.11 |
| Cash Ratio | 0.18 | 0.18 | 0.19 | 0.21 | 0.22 | 0.28 | 0.26 | 0.33 | 0.33 | 0.32 | 0.31 |
| Asset Turnover | — | 1.57 | 1.66 | 1.60 | 1.52 | 1.44 | 1.29 | 1.56 | 1.82 | 1.71 | 1.87 |
| Inventory Turnover | 12.61 | 12.61 | 13.40 | 12.35 | 12.27 | 11.30 | 11.23 | 14.21 | 15.62 | 15.05 | 16.04 |
| Days Sales Outstanding | — | 61.25 | 56.22 | 57.26 | 60.34 | 57.64 | 70.01 | 54.94 | 49.71 | 57.61 | 54.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.7% | 3.2% | 2.2% | 2.5% | 1.0% | 0.7% | 2.2% | 2.3% | 1.1% | 0.9% |
| Payout Ratio | 37.7% | 37.7% | 34.3% | 31.8% | 56.6% | 28.5% | 42.5% | 23.6% | 16.4% | 10.7% | 9.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.2% | 7.1% | 9.5% | 6.9% | 4.4% | 3.4% | 1.6% | 9.3% | 14.0% | 10.5% | 10.1% |
| FCF Yield | 7.9% | 8.6% | 10.5% | 7.5% | 5.2% | 0.8% | 2.2% | 8.0% | 13.6% | 9.7% | 11.3% |
| Buyback Yield | 4.9% | 5.3% | 7.8% | 3.6% | 1.3% | 0.9% | 0.7% | 4.5% | 8.7% | 3.7% | 6.8% |
| Total Shareholder Yield | 7.2% | 8.0% | 11.0% | 5.7% | 3.8% | 1.9% | 1.4% | 6.7% | 11.0% | 4.8% | 7.7% |
| Shares Outstanding | — | $54M | $56M | $59M | $60M | $60M | $60M | $62M | $66M | $69M | $73M |
Cyclical OEM Pricing Pressure
Based on current market data, Lear trades at a forward P/E of 9.21, which appears to reflect investor skepticism regarding the company's ability to expand margins in a stagnant global light vehicle production environment compared to higher-multiple peers like Aptiv or BorgWarner.
The valuation gap between Lear and its technology-oriented peers suggests the market continues to categorize the firm as a traditional industrial manufacturer rather than a high-growth electronics supplier. Investors should monitor whether the forward P/E compression indicates a genuine undervaluation of the E-Systems segment or a rational pricing of the inherent cyclical risks associated with the seating business.
As reported in recent financial statements, Lear's ROIC has remained suppressed in the 2.0% to 2.8% range over the last ten quarters, indicating that the company is struggling to generate returns that meaningfully exceed its cost of capital in the current automotive cycle.
The persistent low ROIC suggests that the capital-intensive nature of the seating business, combined with intense OEM pricing pressure, limits the company's ability to compound value effectively. This trend warrants further investigation into whether the recent strategic pivot toward software-driven acquisitions will eventually improve capital efficiency or merely add to the existing asset base without yielding superior returns.
According to quarterly data, Lear's cash conversion cycle has fluctuated between 30 and 37 days, highlighting the operational challenges of managing inventory and receivables in a supply chain environment that remains highly sensitive to OEM production schedule adjustments and global logistics disruptions.
The variability in the cash conversion cycle suggests that Lear lacks the pricing power to dictate terms to its customers or suppliers, forcing the company to absorb the impact of working capital swings. This inefficiency appears to be a structural byproduct of the Just-in-Time manufacturing model, which leaves little room for error when production volumes deviate from initial forecasts.
Based on reported figures, Lear's debt-to-EBITDA ratio has hovered between 8.12 and 10.26 over the last ten quarters, suggesting that while the company maintains an adequate liquidity buffer, its leverage profile remains sensitive to the inherent volatility of its operating earnings.
The company's interest coverage ratios, which have fluctuated between 7.09 and 11.65, indicate that debt service is currently manageable but vulnerable to any significant downturn in automotive demand. Investors should monitor whether the reported leverage figures are being artificially suppressed by non-recurring items or if the company is successfully deleveraging despite the challenging macro environment.
The P/E ratio is frequently misapplied to Lear, as it obscures the significant impact of non-consolidated joint venture earnings and cyclical restructuring charges that distort net income, making it a poor metric for assessing the company's true underlying cash-generating power.
Analysts should instead prioritize EV/EBITDA or free cash flow yield, as these metrics better account for the company's capital structure and the lumpy nature of tooling reimbursements. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation, as it fails to capture the structural differences between the high-volume seating business and the emerging E-Systems segment.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LEA stock.
Lear Corporation's current P/E ratio is 16.1x. The historical average is 15.1x. This places it at the 76th percentile of its historical range.
Lear Corporation's current EV/EBITDA is 6.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.1x.
Lear Corporation's return on equity (ROE) is 8.9%. The historical average is 8.4%.
Based on historical data, Lear Corporation is trading at a P/E of 16.1x. This is at the 76th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lear Corporation's current dividend yield is 2.34% with a payout ratio of 37.7%.
Lear Corporation has 8.2% gross margin and 4.4% operating margin.
Lear Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.