The market is implicitly assuming approximately 9% year-over-year revenue growth to maintain its ~$74 per share price, assuming 9.5% EBITDA margins. Below offers a sensitivity analysis in graphical form of share price based on Y/Y revenue growth assumptions under constant 9.5% EBITDA margins: Even on the basis of earnings analysis, Visteon doesn’t provide an incredibly compelling valuation. Even when I drop the equity risk premium to 6%, the company’s 2016 P/E ratio projects to only 11.5, above the 16x on which it currently trades. (Normally, I have the equity risk premium at 7.5% and occasionally higher for the sake of conservatism when modeling.) When isolating the margins alone, to obtain its current $74 price, the company would need to start at a 9.5% EBITDA margin for 2016 and achieve 25 basis points of year-over-year margin expansion – on top of 5% Y/Y revenue growth.