MGA Valuation

Magna International Inc

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45.900

-0.05(-0.109%)1D

Overview
Forecast
Valuation
Earnings

MGA Relative Valuation

MGA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MGA is overvalued; if below, it's undervalued.

Historical Valuation

Magna International Inc (MGA) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.53 is considered Undervalued compared with the five-year average of 10.76. The fair price of Magna International Inc (MGA) is between 51.12 to 79.79 according to relative valuation methord. Compared to the current price of 45.90 USD , Magna International Inc is Undervalued By 10.22%.

Relative Value

Fair Zone

51.12-79.79

Current Price：45.90

10.22%

Undervalued

8.49

Trailing

Forward

5.13

EV/EBITDA

Magna International Inc. (MGA) has a current EV/EBITDA of 5.13. The 5-year average EV/EBITDA is 5.86. The thresholds are as follows: Strongly Undervalued below 3.62, Undervalued between 3.62 and 4.74, Fairly Valued between 6.98 and 4.74, Overvalued between 6.98 and 8.10, and Strongly Overvalued above 8.10. The current Forward EV/EBITDA of 5.13 falls within the Historic Trend Line -Fairly Valued range.

8.61

EV/EBIT

Magna International Inc. (MGA) has a current EV/EBIT of 8.61. The 5-year average EV/EBIT is 10.38. The thresholds are as follows: Strongly Undervalued below 5.46, Undervalued between 5.46 and 7.92, Fairly Valued between 12.84 and 7.92, Overvalued between 12.84 and 15.30, and Strongly Overvalued above 15.30. The current Forward EV/EBIT of 8.61 falls within the Historic Trend Line -Fairly Valued range.

0.32

Magna International Inc. (MGA) has a current PS of 0.32. The 5-year average PS is 0.43. The thresholds are as follows: Strongly Undervalued below 0.14, Undervalued between 0.14 and 0.29, Fairly Valued between 0.58 and 0.29, Overvalued between 0.58 and 0.72, and Strongly Overvalued above 0.72. The current Forward PS of 0.32 falls within the Historic Trend Line -Fairly Valued range.

4.65

P/OCF

Magna International Inc. (MGA) has a current P/OCF of 4.65. The 5-year average P/OCF is 5.44. The thresholds are as follows: Strongly Undervalued below 1.54, Undervalued between 1.54 and 3.49, Fairly Valued between 7.39 and 3.49, Overvalued between 7.39 and 9.33, and Strongly Overvalued above 9.33. The current Forward P/OCF of 4.65 falls within the Historic Trend Line -Fairly Valued range.

11.59

P/FCF

Magna International Inc. (MGA) has a current P/FCF of 11.59. The 5-year average P/FCF is 18.54. The thresholds are as follows: Strongly Undervalued below -5.08, Undervalued between -5.08 and 6.73, Fairly Valued between 30.35 and 6.73, Overvalued between 30.35 and 42.16, and Strongly Overvalued above 42.16. The current Forward P/FCF of 11.59 falls within the Historic Trend Line -Fairly Valued range.

Magna International Inc (MGA) has a current Price-to-Book (P/B) ratio of 1.04. Compared to its 3-year average P/B ratio of 1.23 , the current P/B ratio is approximately -15.52% higher. Relative to its 5-year average P/B ratio of 1.51, the current P/B ratio is about -31.11% higher. Magna International Inc (MGA) has a Forward Free Cash Flow (FCF) yield of approximately 12.67%. Compared to its 3-year average FCF yield of 6.04%, the current FCF yield is approximately 109.92% lower. Relative to its 5-year average FCF yield of 7.09% , the current FCF yield is about 78.77% lower.

1.03

P/B

Median3y

1.23

Median5y

1.51

12.67

FCF Yield

Median3y

6.04

Median5y

7.09

Competitors Valuation Multiple

The average P/S ratio for MGA's competitors is 1.96, providing a benchmark for relative valuation. Magna International Inc Corp (MGA) exhibits a P/S ratio of 0.32, which is -83.80% above the industry average. Given its robust revenue growth of -2.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MGA.N

Magna International Inc

Donaldson Company Inc

Allison Transmission Holdings Inc

Performance Decomposition

Market capitalization of MGA increased by 11.98% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.99 to 3.71.

The secondary factor is the Revenue Growth, contributed -2.98%to the performance.

Overall, the performance of MGA in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-2.98%

10.96B → 10.63B

Revenue Growth

24.08%

2.99 → 3.71

Margin Expansion

-9.12%

11.80 → 10.72

P/E Change

11.98%