An in-depth report on Lear highlighted the company’s many advantages compared to other auto parts businesses that sell for between 5 and 11 times EBITDA. But then the analyst computed Lear’s new target price using a multiple of 4.8 times EBITDA. Why? That was left to the reader’s imagination.
From Bill Nygren (Trades, Portfolio)'s fourth-quarter 2019 market commentary.