Magna International Inc.

DB:MGA Stock Report

Market Cap: €12.0b

Magna International Valuation

Is MGA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MGA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MGA (€40.98) is trading below our estimate of fair value (€84.78)

Significantly Below Fair Value: MGA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGA?

Key metric: As MGA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MGA. This is calculated by dividing MGA's market cap by their current earnings.
What is MGA's PE Ratio?
PE Ratio11.7x
EarningsUS$1.08b
Market CapUS$12.64b

Price to Earnings Ratio vs Peers

How does MGA's PE Ratio compare to its peers?

The above table shows the PE ratio for MGA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.6x
CON Continental
12.6x23.5%€12.6b
HLE HELLA GmbH KGaA
29.4x17.1%€9.7b
SHA0 Schaeffler
28.5x71.5%€4.1b
SFQ SAF-Holland
7.9x14.3%€612.8m
MGA Magna International
11.7x17.4%€17.8b

Price-To-Earnings vs Peers: MGA is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does MGA's PE Ratio compare vs other companies in the European Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MGA 11.7xIndustry Avg. 9.5xNo. of Companies9PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGA is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the European Auto Components industry average (9.7x).

Price to Earnings Ratio vs Fair Ratio

What is MGA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: MGA is expensive based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MGA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€40.98
€44.84
+9.4%
22.0%€58.21€24.82n/a7
Nov ’25€36.15
€43.61
+20.6%
24.6%€57.64€21.85n/a7
Oct ’25€36.71
€42.85
+16.7%
25.0%€58.10€22.13n/a7
Sep ’25€37.78
€47.39
+25.4%
13.9%€58.84€39.12n/a6
Aug ’25€40.95
€52.41
+28.0%
16.4%€65.23€41.17n/a6
Jul ’25€39.11
€54.43
+39.2%
14.7%€65.31€43.76n/a7
Jun ’25€41.10
€54.43
+32.4%
14.7%€65.31€43.76n/a7
May ’25€45.94
€59.91
+30.4%
9.2%€65.82€52.05n/a6
Apr ’25€50.22
€60.34
+20.2%
8.6%€65.83€52.87n/a6
Mar ’25€51.02
€60.51
+18.6%
8.8%€66.46€52.93n/a6
Feb ’25€52.20
€63.52
+21.7%
9.8%€72.41€53.24n/a5
Jan ’25€53.72
€65.31
+21.6%
5.0%€70.75€61.24n/a5
Dec ’24€49.35
€65.31
+32.3%
5.0%€70.75€61.24n/a5
Nov ’24€45.38
€66.47
+46.5%
7.1%€75.57€62.69€36.155
Oct ’24€50.60
€66.03
+30.5%
6.7%€74.63€62.18€36.715
Sep ’24€53.94
€65.23
+20.9%
6.6%€73.42€61.17€37.785
Aug ’24€58.38
€62.54
+7.1%
12.0%€76.69€54.68€40.955
Jul ’24€51.32
€60.52
+17.9%
4.6%€63.83€56.57€39.115
Jun ’24€45.20
€60.52
+33.9%
4.6%€63.83€56.57€41.105
May ’24€46.90
€59.49
+26.8%
5.6%€63.29€54.91€45.945
Apr ’24€47.67
€61.80
+29.7%
8.5%€70.45€55.81€50.225
Mar ’24€52.68
€63.14
+19.9%
9.1%€70.51€55.85€51.025
Feb ’24€60.06
€68.89
+14.7%
7.6%€76.36€61.92€52.205
Jan ’24€53.49
€75.85
+41.8%
15.0%€95.73€62.53€53.725
Dec ’23€58.85
€77.51
+31.7%
15.1%€97.56€63.33€49.355
Nov ’23€56.39
€78.48
+39.2%
23.5%€108.96€54.20€45.385

Analyst Forecast: Target price is less than 20% higher than the current share price.

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