Discounted Cash Flow (DCF) Analysis Levered

Magna International Inc. (MGA)

$62.11

+0.52 (+0.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 69.69 | 62.11 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 38,94640,82739,43132,64736,24235,808.6835,380.5434,957.5134,539.5534,126.58
Revenue (%)
Operating Cash Flow 3,3293,7183,7183,2782,9403,239.723,200.983,162.713,124.893,087.53
Operating Cash Flow (%)
Capital Expenditure -1,858-1,650-1,650-1,145-1,372-1,453.08-1,435.71-1,418.54-1,401.58-1,384.83
Capital Expenditure (%)
Free Cash Flow 1,4712,0682,0682,1331,5681,786.631,765.271,744.161,723.311,702.70

Weighted Average Cost Of Capital

Share price $ 62.11
Beta 1.575
Diluted Shares Outstanding 302.80
Cost of Debt
Tax Rate 22.28
After-tax Cost of Debt 1.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.036
Total Debt 5,673
Total Equity 18,806.91
Total Capital 24,479.91
Debt Weighting 23.17
Equity Weighting 76.83
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 38,94640,82739,43132,64736,24235,808.6835,380.5434,957.5134,539.5534,126.58
Operating Cash Flow 3,3293,7183,7183,2782,9403,239.723,200.983,162.713,124.893,087.53
Capital Expenditure -1,858-1,650-1,650-1,145-1,372-1,453.08-1,435.71-1,418.54-1,401.58-1,384.83
Free Cash Flow 1,4712,0682,0682,1331,5681,786.631,765.271,744.161,723.311,702.70
WACC
PV LFCF 1,643.181,493.181,356.871,233.011,120.45
SUM PV LFCF 6,846.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.73
Free cash flow (t + 1) 1,736.76
Terminal Value 25,806.22
Present Value of Terminal Value 16,981.56

Intrinsic Value

Enterprise Value 23,828.25
Net Debt 2,725
Equity Value 21,103.25
Shares Outstanding 302.80
Equity Value Per Share 69.69