Intrinsic value of Magna International - MGA

Previous Close

$54.17

  Intrinsic Value

$111.68

stock screener

  Rating & Target

str. buy

+106%

Previous close

$54.17

 
Intrinsic value

$111.68

 
Up/down potential

+106%

 
Rating

str. buy

We calculate the intrinsic value of MGA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  13.42
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.35
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.17
  5.15
  5.13
  5.12
  5.11
Revenue, $m
  36,445
  39,105
  41,870
  44,744
  47,731
  50,838
  54,070
  57,435
  60,938
  64,589
  68,394
  72,362
  76,502
  80,824
  85,338
  90,054
  94,983
  100,137
  105,528
  111,169
  117,072
  123,253
  129,726
  136,506
  143,610
  151,054
  158,856
  167,035
  175,610
  184,602
  194,032
Variable operating expenses, $m
 
  35,846
  38,366
  40,986
  43,710
  46,543
  49,490
  52,557
  55,751
  59,079
  62,548
  65,974
  69,749
  73,689
  77,805
  82,104
  86,598
  91,297
  96,212
  101,355
  106,738
  112,373
  118,275
  124,456
  130,933
  137,719
  144,833
  152,290
  160,108
  168,306
  176,904
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  33,665
  35,846
  38,366
  40,986
  43,710
  46,543
  49,490
  52,557
  55,751
  59,079
  62,548
  65,974
  69,749
  73,689
  77,805
  82,104
  86,598
  91,297
  96,212
  101,355
  106,738
  112,373
  118,275
  124,456
  130,933
  137,719
  144,833
  152,290
  160,108
  168,306
  176,904
Operating income, $m
  2,780
  3,260
  3,504
  3,758
  4,021
  4,296
  4,581
  4,878
  5,187
  5,509
  5,845
  6,388
  6,753
  7,135
  7,533
  7,950
  8,385
  8,840
  9,316
  9,814
  10,335
  10,880
  11,452
  12,050
  12,677
  13,335
  14,023
  14,745
  15,502
  16,296
  17,128
EBITDA, $m
  3,836
  4,249
  4,550
  4,862
  5,187
  5,524
  5,875
  6,241
  6,622
  7,018
  7,432
  7,863
  8,313
  8,782
  9,273
  9,785
  10,321
  10,881
  11,467
  12,080
  12,721
  13,393
  14,096
  14,833
  15,605
  16,414
  17,261
  18,150
  19,082
  20,059
  21,084
Interest expense (income), $m
  99
  84
  114
  146
  179
  214
  250
  287
  326
  366
  408
  452
  498
  546
  596
  648
  703
  760
  819
  881
  946
  1,015
  1,086
  1,161
  1,239
  1,321
  1,407
  1,497
  1,592
  1,691
  1,795
Earnings before tax, $m
  2,780
  3,176
  3,390
  3,611
  3,842
  4,082
  4,331
  4,591
  4,861
  5,143
  5,437
  5,935
  6,255
  6,589
  6,937
  7,302
  7,682
  8,080
  8,497
  8,932
  9,388
  9,866
  10,366
  10,890
  11,438
  12,013
  12,616
  13,248
  13,911
  14,605
  15,334
Tax expense, $m
  706
  858
  915
  975
  1,037
  1,102
  1,169
  1,240
  1,313
  1,389
  1,468
  1,603
  1,689
  1,779
  1,873
  1,971
  2,074
  2,182
  2,294
  2,412
  2,535
  2,664
  2,799
  2,940
  3,088
  3,244
  3,406
  3,577
  3,756
  3,943
  4,140
Net income, $m
  2,031
  2,318
  2,474
  2,636
  2,805
  2,980
  3,162
  3,351
  3,549
  3,754
  3,969
  4,333
  4,566
  4,810
  5,064
  5,330
  5,608
  5,899
  6,203
  6,521
  6,853
  7,202
  7,567
  7,949
  8,350
  8,770
  9,210
  9,671
  10,155
  10,662
  11,194

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  974
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  22,566
  23,167
  24,805
  26,507
  28,277
  30,117
  32,032
  34,025
  36,101
  38,263
  40,518
  42,868
  45,321
  47,882
  50,556
  53,349
  56,270
  59,323
  62,517
  65,858
  69,356
  73,017
  76,852
  80,869
  85,077
  89,487
  94,109
  98,954
  104,034
  109,361
  114,948
Adjusted assets (=assets-cash), $m
  21,592
  23,167
  24,805
  26,507
  28,277
  30,117
  32,032
  34,025
  36,101
  38,263
  40,518
  42,868
  45,321
  47,882
  50,556
  53,349
  56,270
  59,323
  62,517
  65,858
  69,356
  73,017
  76,852
  80,869
  85,077
  89,487
  94,109
  98,954
  104,034
  109,361
  114,948
Revenue / Adjusted assets
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
  1.688
Average production assets, $m
  3,878
  4,145
  4,438
  4,743
  5,060
  5,389
  5,731
  6,088
  6,459
  6,846
  7,250
  7,670
  8,109
  8,567
  9,046
  9,546
  10,068
  10,615
  11,186
  11,784
  12,410
  13,065
  13,751
  14,470
  15,223
  16,012
  16,839
  17,706
  18,615
  19,568
  20,567
Working capital, $m
  1,468
  1,330
  1,424
  1,521
  1,623
  1,728
  1,838
  1,953
  2,072
  2,196
  2,325
  2,460
  2,601
  2,748
  2,901
  3,062
  3,229
  3,405
  3,588
  3,780
  3,980
  4,191
  4,411
  4,641
  4,883
  5,136
  5,401
  5,679
  5,971
  6,276
  6,597
Total debt, $m
  3,156
  3,262
  4,174
  5,122
  6,108
  7,133
  8,200
  9,310
  10,466
  11,671
  12,926
  14,236
  15,602
  17,028
  18,517
  20,074
  21,700
  23,401
  25,180
  27,041
  28,989
  31,029
  33,165
  35,402
  37,746
  40,202
  42,777
  45,476
  48,305
  51,272
  54,384
Total liabilities, $m
  12,798
  12,904
  13,816
  14,764
  15,750
  16,775
  17,842
  18,952
  20,108
  21,313
  22,568
  23,878
  25,244
  26,670
  28,159
  29,716
  31,342
  33,043
  34,822
  36,683
  38,631
  40,671
  42,807
  45,044
  47,388
  49,844
  52,419
  55,118
  57,947
  60,914
  64,026
Total equity, $m
  9,768
  10,263
  10,988
  11,743
  12,527
  13,342
  14,190
  15,073
  15,993
  16,951
  17,949
  18,991
  20,077
  21,212
  22,396
  23,634
  24,927
  26,280
  27,695
  29,175
  30,725
  32,347
  34,045
  35,825
  37,689
  39,643
  41,690
  43,837
  46,087
  48,447
  50,922
Total liabilities and equity, $m
  22,566
  23,167
  24,804
  26,507
  28,277
  30,117
  32,032
  34,025
  36,101
  38,264
  40,517
  42,869
  45,321
  47,882
  50,555
  53,350
  56,269
  59,323
  62,517
  65,858
  69,356
  73,018
  76,852
  80,869
  85,077
  89,487
  94,109
  98,955
  104,034
  109,361
  114,948
Debt-to-equity ratio
  0.323
  0.320
  0.380
  0.440
  0.490
  0.530
  0.580
  0.620
  0.650
  0.690
  0.720
  0.750
  0.780
  0.800
  0.830
  0.850
  0.870
  0.890
  0.910
  0.930
  0.940
  0.960
  0.970
  0.990
  1.000
  1.010
  1.030
  1.040
  1.050
  1.060
  1.070
Adjusted equity ratio
  0.436
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443
  0.443

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,031
  2,318
  2,474
  2,636
  2,805
  2,980
  3,162
  3,351
  3,549
  3,754
  3,969
  4,333
  4,566
  4,810
  5,064
  5,330
  5,608
  5,899
  6,203
  6,521
  6,853
  7,202
  7,567
  7,949
  8,350
  8,770
  9,210
  9,671
  10,155
  10,662
  11,194
Depreciation, amort., depletion, $m
  1,056
  989
  1,046
  1,104
  1,165
  1,229
  1,295
  1,363
  1,435
  1,509
  1,586
  1,475
  1,559
  1,648
  1,740
  1,836
  1,936
  2,041
  2,151
  2,266
  2,386
  2,512
  2,644
  2,783
  2,927
  3,079
  3,238
  3,405
  3,580
  3,763
  3,955
Funds from operations, $m
  3,467
  3,308
  3,520
  3,741
  3,970
  4,208
  4,456
  4,714
  4,983
  5,263
  5,555
  5,808
  6,126
  6,457
  6,804
  7,166
  7,544
  7,940
  8,354
  8,787
  9,240
  9,714
  10,211
  10,732
  11,277
  11,849
  12,448
  13,076
  13,734
  14,425
  15,149
Change in working capital, $m
  81
  90
  94
  98
  102
  106
  110
  114
  119
  124
  129
  135
  141
  147
  153
  160
  168
  175
  183
  192
  201
  210
  220
  231
  242
  253
  265
  278
  292
  306
  321
Cash from operations, $m
  3,386
  3,217
  3,426
  3,643
  3,868
  4,103
  4,346
  4,600
  4,864
  5,139
  5,426
  5,673
  5,985
  6,310
  6,650
  7,005
  7,377
  7,765
  8,170
  8,595
  9,039
  9,504
  9,991
  10,501
  11,036
  11,596
  12,183
  12,798
  13,443
  14,119
  14,828
Maintenance CAPEX, $m
  0
  -746
  -797
  -854
  -912
  -973
  -1,036
  -1,102
  -1,171
  -1,242
  -1,317
  -1,394
  -1,475
  -1,559
  -1,648
  -1,740
  -1,836
  -1,936
  -2,041
  -2,151
  -2,266
  -2,386
  -2,512
  -2,644
  -2,783
  -2,927
  -3,079
  -3,238
  -3,405
  -3,580
  -3,763
New CAPEX, $m
  -1,807
  -268
  -293
  -305
  -317
  -329
  -343
  -357
  -371
  -387
  -403
  -421
  -439
  -458
  -478
  -500
  -522
  -546
  -571
  -598
  -626
  -655
  -686
  -719
  -753
  -789
  -827
  -867
  -909
  -953
  -1,000
Cash from investing activities, $m
  -4,271
  -1,014
  -1,090
  -1,159
  -1,229
  -1,302
  -1,379
  -1,459
  -1,542
  -1,629
  -1,720
  -1,815
  -1,914
  -2,017
  -2,126
  -2,240
  -2,358
  -2,482
  -2,612
  -2,749
  -2,892
  -3,041
  -3,198
  -3,363
  -3,536
  -3,716
  -3,906
  -4,105
  -4,314
  -4,533
  -4,763
Free cash flow, $m
  -885
  2,204
  2,336
  2,485
  2,640
  2,800
  2,967
  3,141
  3,322
  3,510
  3,706
  3,858
  4,071
  4,293
  4,524
  4,766
  5,018
  5,282
  5,558
  5,846
  6,147
  6,463
  6,793
  7,138
  7,500
  7,879
  8,277
  8,693
  9,129
  9,586
  10,066
Issuance/(repayment) of debt, $m
  251
  868
  912
  948
  986
  1,025
  1,067
  1,110
  1,156
  1,204
  1,256
  1,309
  1,366
  1,426
  1,489
  1,556
  1,627
  1,701
  1,779
  1,861
  1,948
  2,040
  2,136
  2,237
  2,344
  2,456
  2,575
  2,699
  2,830
  2,967
  3,112
Issuance/(repurchase) of shares, $m
  -880
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -635
  868
  912
  948
  986
  1,025
  1,067
  1,110
  1,156
  1,204
  1,256
  1,309
  1,366
  1,426
  1,489
  1,556
  1,627
  1,701
  1,779
  1,861
  1,948
  2,040
  2,136
  2,237
  2,344
  2,456
  2,575
  2,699
  2,830
  2,967
  3,112
Total cash flow (excl. dividends), $m
  -1,504
  3,072
  3,248
  3,433
  3,625
  3,826
  4,034
  4,251
  4,478
  4,715
  4,962
  5,168
  5,437
  5,719
  6,014
  6,322
  6,645
  6,983
  7,337
  7,707
  8,095
  8,502
  8,929
  9,376
  9,844
  10,336
  10,851
  11,392
  11,959
  12,553
  13,177
Retained Cash Flow (-), $m
  -802
  -707
  -726
  -754
  -784
  -815
  -848
  -883
  -919
  -958
  -999
  -1,041
  -1,087
  -1,134
  -1,185
  -1,238
  -1,294
  -1,353
  -1,415
  -1,480
  -1,549
  -1,622
  -1,699
  -1,779
  -1,864
  -1,954
  -2,048
  -2,146
  -2,250
  -2,360
  -2,475
Prev. year cash balance distribution, $m
 
  212
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,577
  2,523
  2,679
  2,841
  3,010
  3,186
  3,368
  3,559
  3,757
  3,963
  4,126
  4,351
  4,585
  4,829
  5,085
  5,351
  5,630
  5,922
  6,227
  6,546
  6,880
  7,230
  7,596
  7,980
  8,382
  8,803
  9,245
  9,708
  10,194
  10,703
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  2,471
  2,310
  2,331
  2,340
  2,333
  2,312
  2,276
  2,224
  2,158
  2,078
  1,959
  1,857
  1,743
  1,621
  1,493
  1,360
  1,225
  1,091
  959
  832
  712
  600
  498
  406
  326
  257
  198
  150
  111
  81
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Magna International Inc. (Magna) is a global automotive supplier. The Company's segments are North America, Europe, Asia, Rest of World, and Corporate and Other. The Company's product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing. The Company has over 320 manufacturing operations and approximately 100 product development, engineering and sales centers in over 30 countries. It provides a range of body, chassis and engineering solutions to its original equipment manufacturer (OEM) customers. It has capabilities in powertrain design, development, testing and manufacturing. It offers bumper fascia systems, exterior trim and modular systems. It offers exterior and interior mirror systems. It offers sealing, trim, engineered glass and module systems. It offers softtops, retractable hardtops, modular tops and hardtops.

FINANCIAL RATIOS  of  Magna International (MGA)

Valuation Ratios
P/E Ratio 10.2
Price to Sales 0.6
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 6.1
Price to Free Cash Flow 13.1
Growth Rates
Sales Growth Rate 13.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13.6%
Cap. Spend. - 3 Yr. Gr. Rate 9.1%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 24.5%
Total Debt to Equity 32.3%
Interest Coverage 29
Management Effectiveness
Return On Assets 10%
Ret/ On Assets - 3 Yr. Avg. 10.5%
Return On Total Capital 16.6%
Ret/ On T. Cap. - 3 Yr. Avg. 18.2%
Return On Equity 21.7%
Return On Equity - 3 Yr. Avg. 21.7%
Asset Turnover 1.7
Profitability Ratios
Gross Margin 14.6%
Gross Margin - 3 Yr. Avg. 14.4%
EBITDA Margin 10.8%
EBITDA Margin - 3 Yr. Avg. 10.6%
Operating Margin 7.6%
Oper. Margin - 3 Yr. Avg. 7.8%
Pre-Tax Margin 7.6%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 5.6%
Net Profit Margin - 3 Yr. Avg. 5.8%
Effective Tax Rate 25.4%
Eff/ Tax Rate - 3 Yr. Avg. 26.1%
Payout Ratio 19%

MGA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MGA stock intrinsic value calculation we used $36445 million for the last fiscal year's total revenue generated by Magna International. The default revenue input number comes from 2016 income statement of Magna International. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MGA stock valuation model: a) initial revenue growth rate of 7.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for MGA is calculated based on our internal credit rating of Magna International, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Magna International.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MGA stock the variable cost ratio is equal to 91.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MGA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Magna International.

Corporate tax rate of 27% is the nominal tax rate for Magna International. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MGA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MGA are equal to 10.6%.

Life of production assets of 5.2 years is the average useful life of capital assets used in Magna International operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MGA is equal to 3.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9768 million for Magna International - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 362.449 million for Magna International is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Magna International at the current share price and the inputted number of shares is $19.6 billion.

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COMPANY NEWS

▶ Magna CEO Feeling More Positive on Nafta Negotiations   [Feb-15-18 03:34PM  Bloomberg]
▶ Cheap Stocks To Invest In   [Jan-31-18 09:02AM  Simply Wall St.]
▶ CANADA STOCKS-TSX falls as Magna, Valeant weigh   [Jan-25-18 10:39AM  Reuters]
▶ Magna Debuts Active Air Dam on 2019 Ram Pickup   [Jan-17-18 08:00AM  PR Newswire]
▶ Magna Announces Outlook   [Jan-16-18 07:00AM  PR Newswire]
▶ Magna Announces Outlook   [07:00AM  CNW Group]
▶ Magna Brings New Mobility Technology to CES 2018   [Jan-02-18 11:24AM  PR Newswire]
▶ Cervus Equipment And Other Great Cheap Stocks   [Jan-01-18 08:02AM  Simply Wall St.]
▶ Auto-Parts Suppliers Fear End of Nafta   [Nov-09-17 05:33PM  Bloomberg Video]
▶ Magna tops Street 3Q forecasts   [05:13AM  Associated Press]
▶ Magna Announces Third Quarter Results   [05:00AM  PR Newswire]
▶ Magna Expands Mirrors Capacity in Slovakia   [Oct-31-17 09:03AM  CNW Group]
▶ Magna Puts a New Twist on Welding   [Oct-26-17 09:00AM  PR Newswire]
▶ Magna Puts a New Twist on Welding   [09:00AM  CNW Group]
▶ This Just In: Magna International Stock Upgraded   [Oct-18-17 11:57AM  Motley Fool]
▶ Top Ranked Value Stocks to Buy for October 12th   [Oct-12-17 09:03AM  Zacks]
▶ 3 Value Stocks for Wise Investors   [06:02AM  Motley Fool]
▶ Magna Announces Settlement of KS Centoco Litigation   [Sep-29-17 05:19PM  CNW Group]
▶ Magna Announces Senior Notes Offering   [Sep-18-17 05:05PM  CNW Group]
▶ Cramer Remix: Why the auto slowdown thesis is kaput   [Sep-14-17 07:31PM  CNBC Videos]
▶ Autoliv Skyrockets On Autonomous-Driving Spinoff Plan   [04:02PM  Investor's Business Daily]
Financial statements of MGA
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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