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DCF valuation

What is Lear Corp worth?

With the base-case assumptions below, a discounted cash flow model on Lear Corp's reported free cash flow gives $164.42 per share. The share price was $122.71 on September 25, 2026, 25% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$527.2M
Average free cash flow, last 5 years
$435.9M
Cash
$1B
balance sheet of July 4, 2026
Debt
$2.72B
balance sheet of July 4, 2026
Diluted shares, fiscal 2025
53,590,776
Revenue growth per year, last 5 years
6.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear1.5%2.0%2.0%10.0%$90.76-26%
Base6.5%4.5%2.5%9.0%$164.42+34%
Bull11.5%7.5%3.0%8.0%$311.28+154%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$218.82$235.43$255.74$281.12$313.74
8.0%$178.22$188.99$201.72$217.00$235.67
9.0%$148.55$155.92$164.42$174.33$186.05
10.0%$125.95$131.19$137.12$143.91$151.74
11.0%$108.18$112.02$116.31$121.14$126.61

Where the presets come from

Base: years 1 to 5 grow at Lear Corp's revenue growth rate over the last 5 fiscal years (6.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Lear Corp company page