Magna International Inc. (MG.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-9.2%

CA$83.15

vs CA$91.57 price

Levered DCF

CA$114.72

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.65

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.82×	11.86×	13.95×	27.5×	16.06×	28.06×	9.76×	6.83×
P/B	1.2×	1.04×	1.42×	1.49×	2.06×	1.86×	1.59×	1.47×
P/S	0.36×	0.28×	0.4×	0.43×	0.67×	0.65×	0.44×	0.38×
EV / EBITDA	4.8×	4.71×	6.06×	7.72×	7.55×	9.66×	5.71×	4.47×
Gross margin	14.3%	13.5%	13.1%	12.3%	14.2%	13.6%	13.7%	14.1%
Operating margin	5.0%	4.9%	6.3%	4.5%	5.4%	5.2%	6.5%	7.7%
Net margin	2.0%	2.4%	2.8%	1.6%	4.2%	2.3%	4.5%	5.6%
Current ratio	1.25×	1.08×	1.06×	1.14×	1.3×	1.37×	1.26×	1.15×
Debt / equity	0.54×	0.61×	0.61×	0.46×	0.48×	0.53×	0.46×	0.41×
Interest coverage	7.67×	6.85×	11.16×	13.55×	15.97×	16.14×	24.68×	27.67×
Dividend yield	3.7%	4.5%	3.1%	3.2%	2.1%	2.2%	2.6%	2.9%
Payout ratio	65.6%	53.4%	43.0%	86.8%	33.9%	61.7%	25.4%	19.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.8%	8.8%	10.2%	5.4%	12.8%	6.7%	16.3%	21.5%
Return on invested capital	6.8%	7.4%	10.4%	7.0%	8.0%	5.9%	10.7%	14.6%
Return on assets	2.7%	3.3%	3.8%	2.1%	5.2%	2.6%	6.8%	8.8%
Free cash flow yield	12.1%	12.2%	3.6%	2.5%	6.4%	10.1%	14.6%	13.2%
Earnings yield	5.6%	8.4%	7.2%	3.6%	6.2%	3.6%	10.2%	14.6%
Enterprise value	CA$20.1B	CA$17.8B	CA$22.9B	CA$20.1B	CA$27B	CA$23.9B	CA$21B	CA$19.4B
Net debt / EBITDA	1.21×	1.54×	1.59×	1.47×	0.76×	1.1×	1.01×	0.86×
Cash conversion cycle (days)	38	33	35	35	34	35	30	31