Discounted Cash Flow (DCF) Analysis Levered

Magna International Inc. (MGA)

$54.19

+0.14 (+0.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 66.54 | 54.19 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,43132,64736,24237,84043,614.4345,083.8446,602.7648,172.8549,795.8451,473.51
Revenue (%)
Operating Cash Flow 3,9603,2782,9402,0953,206.753,704.513,829.323,958.334,091.694,229.55
Operating Cash Flow (%)
Capital Expenditure -1,441-1,145-1,372-1,681-2,594.73-1,924.09-1,988.91-2,055.92-2,125.19-2,196.79
Capital Expenditure (%)
Free Cash Flow 2,5192,1331,568414612.021,780.421,840.411,902.411,966.512,032.76

Weighted Average Cost Of Capital

Share price $ 54.19
Beta 1.718
Diluted Shares Outstanding 286.60
Cost of Debt
Tax Rate 24.47
After-tax Cost of Debt 3.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.319
Total Debt 7,186.04
Total Equity 15,530.85
Total Capital 22,716.90
Debt Weighting 31.63
Equity Weighting 68.37
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,43132,64736,24237,84043,614.4345,083.8446,602.7648,172.8549,795.8451,473.51
Operating Cash Flow 3,9603,2782,9402,0953,206.753,704.513,829.323,958.334,091.694,229.55
Capital Expenditure -1,441-1,145-1,372-1,681-2,594.73-1,924.09-1,988.91-2,055.92-2,125.19-2,196.79
Free Cash Flow 2,5192,1331,568414612.021,780.421,840.411,902.411,966.512,032.76
WACC
PV LFCF 1,6271,536.891,451.761,371.361,295.40
SUM PV LFCF 7,282.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.43
Free cash flow (t + 1) 2,073.42
Terminal Value 27,906.01
Present Value of Terminal Value 17,783.44

Intrinsic Value

Enterprise Value 25,065.84
Net Debt 5,994.17
Equity Value 19,071.67
Shares Outstanding 286.60
Equity Value Per Share 66.54