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:
Below please find a table outlining a discounted cash flow forecast for MGA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Magna International Inc ranked in the 72th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 178.5%. As for the metrics that stood out in our discounted cash flow analysis of Magna International Inc, consider:
The company has produced more trailing twelve month cash flow than 94.36% of its sector Consumer Cyclical.
Magna International Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 19.11% of tickers in our DCF set.
MGA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 19.11% 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 VIAC, WSM, ANF, IPG, and DISH.
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