Aptiv

Methodology

Aptiv's automotive electrical systems and advanced safety technology earnings are cyclical with vehicle production but buffered by content-per-vehicle growth in electrification and ADAS. The company's exposure to EV and autonomous driving trends provides growth beyond traditional auto supplier cyclicality. This calculation requires careful attention to automotive cycle positioning—using mid-cycle production assumptions provides more reliable baselines than peak or trough vehicle volumes.

Methodology

Aptiv's PEG ratio can swing significantly with automotive cycle perceptions and EV adoption optimism versus traditional auto supplier skepticism. The company's pivot toward software and advanced electronics justifies higher multiples than legacy parts suppliers, but execution risk and customer concentration create concerns. Compare to both traditional suppliers and EV component plays to gauge whether Aptiv's technology positioning commands appropriate premiums or discounts.

Methodology

Aptiv maintains a modest dividend yield (around 1.0-2.0%) while prioritizing growth investments in electric vehicle architecture and software-defined vehicle technology. The company balances capital returns with R&D needs to transition from traditional wiring harnesses to advanced electrical systems. PEGY provides some additional context for total return, though for an auto supplier in transition like Aptiv, technology execution and market share gains matter more than dividend-adjusted metrics.