Discounted Cash Flow (DCF) Analysis Unlevered

Magna International Inc. (MGA)

$58.48

+0.44 (+0.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 67.28 | 58.48 | undervalue

Operating Data

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 (%)
EBITDA 4,3474,4783,9102,7723,4993,594.573,551.593,509.123,467.173,425.71
EBITDA (%)
EBIT 3,0403,0282,4601,1912,101.192,213.472,1872,160.852,135.022,109.49
EBIT (%)
Depreciation 1,3071,4501,4501,5811,397.811,381.101,364.581,348.271,332.151,316.22
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 7266841,2763,2682,9481,784.691,763.351,742.271,721.441,700.86
Total Cash (%)
Account Receivables 6,8786,6055,9276,3946,3076,148.886,075.366,002.725,930.955,860.04
Account Receivables (%)
Inventories 3,3793,4033,3043,4443,9693,358.213,318.063,278.393,239.193,200.46
Inventories (%)
Accounts Payable 6,2996,0945,6286,2666,4655,901.615,831.055,761.335,692.445,624.38
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price $ 58.48
Beta 1.579
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 10.920
Total Debt 5,673
Total Equity 17,707.74
Total Capital 23,380.74
Debt Weighting 24.26
Equity Weighting 75.74
Wacc

Build Up Free Cash

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
EBITDA 4,3474,4783,9102,7723,4993,594.573,551.593,509.123,467.173,425.71
EBIT 3,0403,0282,4601,1912,101.192,213.472,1872,160.852,135.022,109.49
Tax Rate 26.44%22.20%20.60%24.75%22.28%23.25%23.25%23.25%23.25%23.25%
EBIAT 2,236.162,355.911,953.17896.211,633.061,698.741,678.431,658.361,638.531,618.94
Depreciation 1,3071,4501,4501,5811,397.811,381.101,364.581,348.271,332.151,316.22
Accounts Receivable -273678-46787158.1273.5272.6471.7770.91
Inventories --2499-140-525610.7940.1539.6739.2038.73
Accounts Payable --205-466638199-563.39-70.56-69.72-68.88-68.06
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
UFCF 1,685.162,199.912,064.171,363.211,419.871,832.271,650.411,630.681,611.181,591.92
WACC
PV UFCF 1,688.261,401.181,275.611,161.301,057.24
SUM PV UFCF 6,583.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.53
Free cash flow (t + 1) 1,623.76
Terminal Value 24,866.12
Present Value of Terminal Value 16,514.26

Intrinsic Value

Enterprise Value 23,097.85
Net Debt 2,725
Equity Value 20,372.85
Shares Outstanding 302.80
Equity Value Per Share 67.28