DCF Tool

LEA

Lear Corp. – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
Lear, a global automotive technology leader in Seating and E-Systems, enables superior in-vehicle experiences for consumers around the world. Our diverse team of talented employees in 39 countries is driven by a commitment to innovation, operational excellence, and sustainability. Lear is Making every drive betterâ„¢ by providing the technology for safer, smarter, and more comfortable journeys. Lear, headquartered in Southfield, Michigan, serves every major automaker in the world and ranks 166 on the Fortune 500.
Analysis Results
Intrinsic Value $876.62
Latest Price $134.84
Relative Value 85% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.07 1.92
2023 2.37 2.05
2024 2.72 2.18
2025 3.12 2.32
2026 3.58 2.48
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 64.6 billion. This corresponds to a present value of 41.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.9 billion. Adding in the terminal value gives a total present value of 52.4 billion.

There are presently 59.8 million outstanding shares, so the intrinsic value per share is 876.62.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,530,400,000
Current Cash 2,643,600,000
Current Liabilities 9,519,800,000
Current Debt 1,600,000
Non-Cash Working Capital (NCWC) 1,368,600,000
Change in NCWC 970,400,000
EBIT 1,382,400,000
Tax Provision 275,400,000
Depreciation and Amortization 1,147,800,000
Capital Expenditure -1,170,200,000
Unlevered Free Cash Flow 2,012,768,630
Current Assets 6,776,700,000
Current Cash 1,316,000,000
Current Liabilities 5,076,700,000
Current Debt 14,200,000
Non-Cash Working Capital (NCWC) 398,200,000
Change in NCWC 129,200,000
EBIT 482,600,000
Tax Provision 93,900,000
Depreciation and Amortization 539,900,000
Capital Expenditure -452,300,000
Unlevered Free Cash Flow 561,156,741
Current Assets 6,406,700,000
Current Cash 1,504,800,000
Current Liabilities 4,666,200,000
Current Debt 33,300,000
Non-Cash Working Capital (NCWC) 269,000,000
Change in NCWC -35,700,000
EBIT 1,093,400,000
Tax Provision 146,100,000
Depreciation and Amortization 509,900,000
Capital Expenditure -603,900,000
Unlevered Free Cash Flow 800,160,135
Current Assets 6,280,500,000
Current Cash 1,498,000,000
Current Liabilities 4,500,600,000
Current Debt 22,800,000
Non-Cash Working Capital (NCWC) 304,700,000
Change in NCWC 81,200,000
EBIT 1,674,300,000
Tax Provision 311,900,000
Depreciation and Amortization 484,400,000
Capital Expenditure -677,000,000
Unlevered Free Cash Flow 1,227,846,638
Current Assets 6,613,000,000
Current Cash 1,544,200,000
Current Liabilities 4,854,300,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 223,500,000
Change in NCWC 14,100,000
EBIT 1,660,000,000
Tax Provision 197,500,000
Depreciation and Amortization 427,700,000
Capital Expenditure -594,500,000
Unlevered Free Cash Flow 1,299,589,660
Current Assets 5,649,300,000
Current Cash 1,301,800,000
Current Liabilities 4,182,300,000
Current Debt 44,200,000
Non-Cash Working Capital (NCWC) 209,400,000
Change in NCWC -41,100,000
EBIT 1,499,600,000
Tax Provision 370,200,000
Depreciation and Amortization 378,200,000
Capital Expenditure -528,300,000
Unlevered Free Cash Flow 914,870,603
Current Assets 5,286,600,000
Current Cash 1,219,600,000
Current Liabilities 3,839,600,000
Current Debt 23,100,000
Non-Cash Working Capital (NCWC) 250,500,000
Change in NCWC -320,900,000
EBIT 1,236,600,000
Tax Provision 285,500,000
Depreciation and Amortization 347,800,000
Capital Expenditure -485,800,000
Unlevered Free Cash Flow 451,195,514
Current Assets 5,379,600,000
Current Cash 1,094,100,000
Current Liabilities 3,957,800,000
Current Debt 243,700,000
Non-Cash Working Capital (NCWC) 571,400,000
Change in NCWC 365,700,000
EBIT 965,500,000
Tax Provision 121,400,000
Depreciation and Amortization 310,900,000
Capital Expenditure -424,700,000
Unlevered Free Cash Flow 1,075,100,983
Current Assets 4,922,500,000
Current Cash 1,137,700,000
Current Liabilities 3,579,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 205,700,000
Change in NCWC -48,700,000
EBIT 775,000,000
Tax Provision 192,700,000
Depreciation and Amortization 285,500,000
Capital Expenditure -460,600,000
Unlevered Free Cash Flow 320,910,871
Current Assets 4,873,500,000
Current Cash 1,402,200,000
Current Liabilities 3,216,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 254,400,000
Change in NCWC 310,700,000
EBIT 735,500,000
Tax Provision -638,000,000
Depreciation and Amortization 239,500,000
Capital Expenditure -458,300,000
Unlevered Free Cash Flow 827,400,000

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