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Linamar Corporation (LNR) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$6.0B

LC Linamar Corporation LNR · TO
PriceC$105.66
Fair ValueC$181.53
Upside+71.8%
Quality64/100
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Mixed Growth
Thin margins · 5.9% net margin
Low debt · generates free cash flow
1.45% dividend yield
Ranks above peers (12/15)
Moderate moat 45/100
Evidence: High Range C$119.98 – C$226.91 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 24 days ago

Fair value updated Jul 16, 2026, revised from C$217.17 to C$181.53 (−16.4%) since Jun 25, 2026. Share price +6.7% over the past month.

A solid business, screening 72% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (C$119.98). The market is more pessimistic than our downside scenario.
  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (C$119.98 to C$226.91) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

C$107.65 C$43.38 Fair Value C$181.53 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range C$43.38 – C$107.65 · fair‑value band C$119.98 – C$226.91 · the C$105.66 price screens below the C$181.53 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Linamar Corporation (LNR) currently trades at C$105.66, while our model-based Fair Value estimate is C$181.53, implying the stock looks roughly 71.8% undervalued today. The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Linamar Corporation generated revenue of C$10.6B at a net margin of 5.9%. Revenue grew 5.5% year over year. It earns a return on equity of 10.5%. Net debt stands at C$1.2B. Fundamentals as of Jul 16, 2026

Our scenario range runs from C$119.98 (bear case) to C$226.91 (bull case); at C$105.66, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 74% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at 72%, LNR screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF C$166.56 C$286.40 C$474.96 80
Residual Income C$87.79 C$96.38 C$139.65 76
Rev-Margin DCF C$135.31 C$234.73 C$360.25 74
All 26 models by family
DCF Models
FCF DCF C$167.40 C$297.12 C$507.93 38
Owner Earnings C$142.50 C$254.53 C$436.59 31
5Y Revenue Exit C$135.31 C$235.96 C$369.51 39
5Y EBITDA Exit C$185.48 C$337.19 C$524.42 41
5Y P/E Exit C$144.94 C$255.39 C$378.48 38
10Y Revenue Exit C$140.56 C$237.58 C$379.92 36
10Y EBITDA Exit C$177.17 C$309.21 C$504.08 37
10Y P/E Exit C$151.12 C$251.33 C$387.11 35
Earnings-Based
Graham-Dodd C$67.12 C$288.59 C$394.38 54
Lynch FV C$73.94 C$105.62 C$137.31 50
PEG = 1.0 C$73.94 C$105.62 C$137.31 46
EPV C$88.49 C$104.86 C$118.99 59
Dividend Discount
Gordon GGM C$9.94 C$19.80 C$29.98 70
DDM Multi-Stage C$9.94 C$17.11 C$20.90 61
Multiples
P/E Multiple C$162.88 C$217.17 C$271.46 63
P/S Multiple C$125.86 C$167.81 C$209.77 58
P/B Multiple C$125.86 C$167.81 C$209.77 55
EV/EBIT C$188.19 C$255.99 C$323.79 53
EV/EBITDA C$214.98 C$291.71 C$368.43 54
EV/Revenue C$121.90 C$180.66 C$239.42 43
Asset-Based
NCAV (Graham) C$51.49 C$68.99 C$102.97 50
Growth DCF
Growth DCF C$166.56 C$286.40 C$474.96 80
Rev-Margin DCF C$135.31 C$234.73 C$360.25 74
Economic Profit
Residual Income C$87.79 C$96.38 C$139.65 76
ROIC Compounder C$88.49 C$106.86 C$141.27 72
Growth Earnings
Growth-Adj P/E C$127.05 C$181.51 C$235.96 68

Widest divergence: DCF Models (C$254.53) versus Dividend Discount (C$17.11). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) C$10.6B
Revenue growth (YoY) +5.5%
Net margin 5.9%
Return on equity 10.5%
Free cash flow C$909M FY2025
P/E ratio 9.9
More key figures
Operating margin 9.1%
EPS (TTM) C$10.50
Dividend yield 1.4%
EPS growth (YoY) +128%
Net debt C$1.2B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 63 · Market factors (momentum, volatility) 72

Profitability 42
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 96
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Linamar Corporation, together with its subsidiaries, manufactures and sells engineered products in Canada, Europe, the Asia Pacific, and rest of North America. It operates through two segments, Mobility and Industrial.

Full company description

Linamar Corporation, together with its subsidiaries, manufactures and sells engineered products in Canada, Europe, the Asia Pacific, and rest of North America. It operates through two segments, Mobility and Industrial. The Mobility segment offers electrified products, including 3P3200, e3P4100, and 3P5700 eAxle gearboxes; utility and medium duty platform eAxles; FlexForm conformable hydrogen storage tanks; light duty beam eAxle; structure and chassis, including front and rear subframes, semi-trailing arms, front knuckles, battery enclosures, crossrails, shock towers, and cross car beams; driveline products, such as differential assemblies, power transfer and rear drive units, and engineered gears; transmission products, which comprises gears and shafts, gearbox housings, shaft and shell assemblies, and clutch modules; and engines, including cylinder blocks and heads, connecting rods, camshafts, and balance shaft modules for battery, hybrid, and fuel-cell electric vehicles. This segment serves electrified and traditionally powered markets. The Industrial segment provides scissor, boom and telehandler lifts for the aerial work platform industry; combine draper headers and self-propelled windrowers for the agricultural harvesting industry; farm tillage and crop fertilizer applicator equipment; and air seeders, cultivators, and planters for the seeding and farming industry. The company also provides medical devices and precision medical components. It offers its products under the Linamar, Skyjack, MacDon, Salford, Bourgault, and McLaren Engineering brand names. Linamar Corporation was founded in 1964 and is headquartered in Guelph, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Linamar Corporation reported revenue of C$10.2B in FY2025 versus C$6.5B in FY2021, a compound +11.9%/yr. Reported net income was C$585M in FY2025, compounding +8.6%/yr from FY2021.

Growth Quality 80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
C$10.2B
Latest YoY
−3.3%
Avg. growth/yr (3Y)
+8.9%
Avg. growth/yr (5Y)
+12.0%
Avg. growth/yr (32Y)
+13.4%
Revenue +11.9%/yr
FY21 C$6.5B
FY22 C$7.9B
FY23 C$9.7B
FY24 C$10.6B
FY25 C$10.2B
Net income +8.6%/yr
FY21 C$421M
FY22 C$426M
FY23 C$503M
FY24 C$258M
FY25 C$585M

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Cite: Fair Value Calculator (2026). "Linamar Corporation Fair Value". https://www.fairvalue-calculator.com/stock/LNR

Peer Group

Auto Parts · 642 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside +72% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.30× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 9.7× · Cheaper than 75% of peers
P/B 0.71× · Cheaper than 75% of peers
P/S (TTM) 0.41× · Cheaper than median
P/FCF 4.7× · Pricier than median
EV/EBITDA 3.3× · Cheaper than 75% of peers
PEG 0.56× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 17
FUTURE 28 · sector 23
PAST 42 · sector 26
HEALTH 85 · sector 95
DIVIDEND 29 · sector 30

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

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Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
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Frequently asked questions

Is Linamar Corporation (LNR) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of C$181.53 versus a price of C$105.66, about +72% (undervalued).
What is the fair value of LNR?
Our model-based fair value for Linamar Corporation is C$181.53 (as of Jul 16, 2026), built from audited fundamentals. The current price is C$105.66.
What is the quality score of LNR?
Linamar Corporation has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Linamar Corporation (LNR)?
Linamar Corporation reported trailing-twelve-month revenue of about C$10.6B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of LNR?
The net profit margin of Linamar Corporation is about 5.9%, meaning it keeps roughly 5.9% of revenue as net income. Based on the latest reported figures.
Does Linamar Corporation pay a dividend?
Linamar Corporation currently shows a dividend yield of about 1.37% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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