Magna International Inc. (MGA) 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

-40.2%

$39.29

vs $65.72 price

Levered DCF

$69.29

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.52

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	17.83×	11.87×	13.93×	27.54×	16.06×	28.1×	9.78×	6.83×
P/B	1.2×	1.04×	1.42×	1.49×	2.06×	1.87×	1.59×	1.47×
P/S	0.35×	0.28×	0.4×	0.43×	0.67×	0.65×	0.44×	0.38×
EV / EBITDA	5.79×	4.71×	6.38×	8.32×	7.55×	9.67×	5.71×	4.95×
Gross margin	10.3%	13.5%	13.1%	12.3%	14.2%	13.6%	13.7%	14.1%
Operating margin	5.0%	4.9%	4.8%	4.2%	5.4%	3.1%	6.0%	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	10.1×	6.85×	8.42×	12.48×	15.97×	9.58×	22.76×	27.67×
Dividend yield	3.6%	4.5%	3.1%	3.2%	2.1%	2.2%	2.6%	2.9%
Payout ratio	64.5%	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	7.0%	7.4%	7.9%	6.5%	8.0%	3.5%	9.9%	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	15.2%	12.1%	3.6%	2.5%	6.3%	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	$20.1B	$17.8B	$22.9B	$20.2B	$27.1B	$23.9B	$21B	$19.4B
Net debt / EBITDA	1.46×	1.54×	1.68×	1.58×	0.76×	1.1×	1.01×	0.95×
Cash conversion cycle (days)	38	33	35	35	34	35	30	31