Magna International develops, manufactures, engineers, supplies, and sells automotive products. It operates through North America, Europe, Asia, and Rest of World segments. The company was founded in 1957 and is based in Aurora, Canada.
MGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Magna International Inc. To summarize, we found that Magna International Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 557.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for MGA, they are:
The company has produced more trailing twelve month cash flow than 94.97% of its sector Consumer Cyclical.
Magna International Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 13.91% of tickers in our DCF set.
MGA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 13.91% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MGA, try LBTYA, DISH, GM, UAA, and CPRI.