DCF Tool

MGA

Magna International Inc. – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
magna international stanztechnik gmbh automobiltechnik dürbheim is a management consulting company based out of 8 in breiten, dürbheim, germany.
Analysis Results
Intrinsic Value $60.89
Latest Price $54.19
Relative Value 11% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -2.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -2.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.47 1.35
2024 1.43 1.21
2025 1.4 1.08
2026 1.36 0.973
2027 1.33 0.872
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.9 billion. This corresponds to a present value of 12.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.49 billion. Adding in the terminal value gives a total present value of 17.5 billion.

There are presently 287.0 million outstanding shares, so the intrinsic value per share is 60.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 12,525,000,000
Current Cash 1,234,000,000
Current Liabilities 10,998,000,000
Current Debt 662,000,000
Non-Cash Working Capital (NCWC) 955,000,000
Change in NCWC 347,000,000
EBIT 1,662,000,000
Tax Provision 237,000,000
Depreciation and Amortization 1,588,000,000
Capital Expenditure -1,681,000,000
Unlevered Free Cash Flow 1,467,373,576
Current Assets 13,502,000,000
Current Cash 2,948,000,000
Current Liabilities 10,401,000,000
Current Debt 455,000,000
Non-Cash Working Capital (NCWC) 608,000,000
Change in NCWC 124,000,000
EBIT 2,064,000,000
Tax Provision 395,000,000
Depreciation and Amortization 1,767,000,000
Capital Expenditure -1,372,000,000
Unlevered Free Cash Flow 2,164,478,439
Current Assets 13,366,000,000
Current Cash 3,268,000,000
Current Liabilities 9,743,000,000
Current Debt 129,000,000
Non-Cash Working Capital (NCWC) 484,000,000
Change in NCWC -562,000,000
EBIT 1,676,000,000
Tax Provision 329,000,000
Depreciation and Amortization 1,581,000,000
Capital Expenditure -1,145,000,000
Unlevered Free Cash Flow 1,001,884,691
Current Assets 10,745,000,000
Current Cash 1,276,000,000
Current Liabilities 8,529,000,000
Current Debt 106,000,000
Non-Cash Working Capital (NCWC) 1,046,000,000
Change in NCWC -1,099,000,000
EBIT 2,545,000,000
Tax Provision 591,000,000
Depreciation and Amortization 1,602,000,000
Capital Expenditure -1,441,000,000
Unlevered Free Cash Flow 930,394,062
Current Assets 11,834,000,000
Current Cash 684,000,000
Current Liabilities 10,304,000,000
Current Debt 1,299,000,000
Non-Cash Working Capital (NCWC) 2,145,000,000
Change in NCWC 453,000,000
EBIT 3,107,000,000
Tax Provision 619,000,000
Depreciation and Amortization 1,450,000,000
Capital Expenditure -1,650,000,000
Unlevered Free Cash Flow 2,708,277,533
Current Assets 11,220,000,000
Current Cash 726,000,000
Current Liabilities 9,169,000,000
Current Debt 367,000,000
Non-Cash Working Capital (NCWC) 1,692,000,000
Change in NCWC 436,000,000
EBIT 3,108,000,000
Tax Provision 744,000,000
Depreciation and Amortization 1,307,000,000
Capital Expenditure -1,858,000,000
Unlevered Free Cash Flow 2,221,958,986
Current Assets 10,163,000,000
Current Cash 974,000,000
Current Liabilities 8,695,000,000
Current Debt 762,000,000
Non-Cash Working Capital (NCWC) 1,256,000,000
Change in NCWC 15,000,000
EBIT 2,898,000,000
Tax Provision 706,000,000
Depreciation and Amortization 1,056,000,000
Capital Expenditure -1,807,000,000
Unlevered Free Cash Flow 1,426,033,093

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