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Is this Large Market Cap Stock target price reasonable for Lear Corp. (NYSE:LEA)?

The company in question is, Lear Corp. (NYSE:LEA) currently with a stock price of 116.24 (-0.13% today). The market cap for Lear Corp. is 8378.92, and is in the sector Consumer Goods, and Auto Parts industry. The target price for Lear Corp. is 137.92. Currently Lear Corp. is trading with a P/E of 9.29, and a forward P/E of 8.28. Average volume for Lear Corp. is 758.82 and so far today it is 233398.

Performance in the last year for Lear Corp. has been 1.99%. For EPS growth, Lear Corp. has seen a growth of 16.50%, and is looking to grow in the next year to 5.94%. More long term stats show that EPS growth has been 18.80% over the last five years and could be 11.80% for the next five years. Lear Corp. has seen sales growth quarter over quarter at 1.90%, with EPS growth quarter over quarter at 64.10%. The 20-day simple moving average is -0.39%, with the 200-day simple moving average coming to 4.82%.

Since the IPO date for Lear Corp. on the 11/09/2009, Lear Corp. has seen performance year to date to be -4.47%. With Lear Corp. trading at 116.24, the dividend yield is 1.03%, and the EPS is 12.53.

So could Lear Corp., be undervalued? Well as said before P/E is 9.29. The PEG is 0.79, P/S is 0.45 and the P/B is at 2.83. The P/cash is 6.01, with P/free cash flow at 7.34.

Lear Corp. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.1. This is with long term debt/equity at 0.64, and total debt/equity at 0.65.

In terms of margins, Lear Corp. has a gross margin of 11.30%, an operating margin of 7.40% and a profit margin of 5.10%.Payout ratio for Lear Corp. is 8.70%. Return on assets come to 9.70% with return on investment coming to 17.10%.

Insider ownership for Lear Corp., is at 0.29% and institutional ownership comes to 97.50%. Outstanding shares are at 71.99. While shares float is 71.35. The float short is currently 6.76%, and short ratio is 6.36.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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