Intrinsic value of Magna International - MGA

Previous Close

$59.78

  Intrinsic Value

$90.59

stock screener

  Rating & Target

str. buy

+52%

Previous close

$59.78

 
Intrinsic value

$90.59

 
Up/down potential

+52%

 
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

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 22.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.90
  6.71
  6.54
  6.39
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
Revenue, $m
  41,633
  44,427
  47,332
  50,354
  53,500
  56,775
  60,187
  63,743
  67,452
  71,321
  75,359
  79,576
  83,982
  88,587
  93,401
  98,437
  103,705
  109,219
  114,992
  121,036
  127,368
  134,001
  140,952
  148,237
  155,873
  163,879
  172,274
  181,079
  190,313
  199,998
Variable operating expenses, $m
  38,617
  41,189
  43,865
  46,648
  49,545
  52,561
  55,703
  58,979
  62,394
  65,957
  69,401
  73,285
  77,343
  81,583
  86,017
  90,655
  95,506
  100,584
  105,901
  111,467
  117,298
  123,407
  129,808
  136,517
  143,550
  150,923
  158,655
  166,763
  175,267
  184,187
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
  38,617
  41,189
  43,865
  46,648
  49,545
  52,561
  55,703
  58,979
  62,394
  65,957
  69,401
  73,285
  77,343
  81,583
  86,017
  90,655
  95,506
  100,584
  105,901
  111,467
  117,298
  123,407
  129,808
  136,517
  143,550
  150,923
  158,655
  166,763
  175,267
  184,187
Operating income, $m
  3,017
  3,237
  3,467
  3,706
  3,955
  4,214
  4,483
  4,765
  5,058
  5,364
  5,958
  6,291
  6,640
  7,004
  7,384
  7,782
  8,199
  8,635
  9,091
  9,569
  10,069
  10,594
  11,143
  11,719
  12,323
  12,956
  13,620
  14,316
  15,046
  15,812
EBITDA, $m
  4,386
  4,681
  4,987
  5,305
  5,637
  5,982
  6,341
  6,716
  7,107
  7,514
  7,940
  8,384
  8,848
  9,333
  9,841
  10,371
  10,926
  11,507
  12,115
  12,752
  13,419
  14,118
  14,850
  15,618
  16,423
  17,266
  18,151
  19,078
  20,051
  21,072
Interest expense (income), $m
  99
  192
  245
  300
  357
  417
  478
  543
  610
  680
  752
  828
  908
  991
  1,077
  1,168
  1,262
  1,361
  1,464
  1,573
  1,686
  1,805
  1,929
  2,060
  2,196
  2,339
  2,489
  2,646
  2,811
  2,984
  3,166
Earnings before tax, $m
  2,824
  2,992
  3,167
  3,349
  3,538
  3,735
  3,941
  4,155
  4,378
  4,611
  5,129
  5,383
  5,649
  5,926
  6,217
  6,520
  6,838
  7,170
  7,518
  7,883
  8,265
  8,665
  9,084
  9,523
  9,984
  10,467
  10,973
  11,504
  12,061
  12,646
Tax expense, $m
  763
  808
  855
  904
  955
  1,009
  1,064
  1,122
  1,182
  1,245
  1,385
  1,454
  1,525
  1,600
  1,678
  1,760
  1,846
  1,936
  2,030
  2,128
  2,231
  2,339
  2,453
  2,571
  2,696
  2,826
  2,963
  3,106
  3,257
  3,414
Net income, $m
  2,062
  2,184
  2,312
  2,445
  2,583
  2,727
  2,877
  3,033
  3,196
  3,366
  3,744
  3,930
  4,124
  4,326
  4,538
  4,760
  4,992
  5,234
  5,488
  5,754
  6,033
  6,325
  6,631
  6,952
  7,288
  7,641
  8,010
  8,398
  8,805
  9,231

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  27,140
  28,961
  30,855
  32,825
  34,876
  37,011
  39,235
  41,553
  43,971
  46,493
  49,126
  51,875
  54,747
  57,749
  60,887
  64,170
  67,604
  71,199
  74,962
  78,902
  83,030
  87,354
  91,885
  96,634
  101,612
  106,831
  112,304
  118,043
  124,063
  130,377
Adjusted assets (=assets-cash), $m
  27,140
  28,961
  30,855
  32,825
  34,876
  37,011
  39,235
  41,553
  43,971
  46,493
  49,126
  51,875
  54,747
  57,749
  60,887
  64,170
  67,604
  71,199
  74,962
  78,902
  83,030
  87,354
  91,885
  96,634
  101,612
  106,831
  112,304
  118,043
  124,063
  130,377
Revenue / Adjusted assets
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
  1.534
Average production assets, $m
  10,950
  11,684
  12,448
  13,243
  14,070
  14,932
  15,829
  16,764
  17,740
  18,757
  19,819
  20,929
  22,087
  23,298
  24,565
  25,889
  27,274
  28,725
  30,243
  31,833
  33,498
  35,242
  37,070
  38,986
  40,995
  43,100
  45,308
  47,624
  50,052
  52,600
Working capital, $m
  -3,122
  -3,332
  -3,550
  -3,777
  -4,012
  -4,258
  -4,514
  -4,781
  -5,059
  -5,349
  -5,652
  -5,968
  -6,299
  -6,644
  -7,005
  -7,383
  -7,778
  -8,191
  -8,624
  -9,078
  -9,553
  -10,050
  -10,571
  -11,118
  -11,690
  -12,291
  -12,921
  -13,581
  -14,273
  -15,000
Total debt, $m
  4,541
  5,557
  6,614
  7,714
  8,858
  10,049
  11,290
  12,584
  13,933
  15,340
  16,809
  18,343
  19,946
  21,621
  23,372
  25,204
  27,120
  29,126
  31,226
  33,425
  35,728
  38,140
  40,669
  43,319
  46,097
  49,009
  52,063
  55,265
  58,624
  62,147
Total liabilities, $m
  15,144
  16,160
  17,217
  18,317
  19,461
  20,652
  21,893
  23,187
  24,536
  25,943
  27,412
  28,946
  30,549
  32,224
  33,975
  35,807
  37,723
  39,729
  41,829
  44,028
  46,331
  48,743
  51,272
  53,922
  56,700
  59,612
  62,666
  65,868
  69,227
  72,750
Total equity, $m
  11,996
  12,801
  13,638
  14,509
  15,415
  16,359
  17,342
  18,367
  19,435
  20,550
  21,714
  22,929
  24,198
  25,525
  26,912
  28,363
  29,881
  31,470
  33,133
  34,875
  36,699
  38,610
  40,613
  42,712
  44,913
  47,219
  49,638
  52,175
  54,836
  57,627
Total liabilities and equity, $m
  27,140
  28,961
  30,855
  32,826
  34,876
  37,011
  39,235
  41,554
  43,971
  46,493
  49,126
  51,875
  54,747
  57,749
  60,887
  64,170
  67,604
  71,199
  74,962
  78,903
  83,030
  87,353
  91,885
  96,634
  101,613
  106,831
  112,304
  118,043
  124,063
  130,377
Debt-to-equity ratio
  0.380
  0.430
  0.480
  0.530
  0.570
  0.610
  0.650
  0.690
  0.720
  0.750
  0.770
  0.800
  0.820
  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
  1.080
Adjusted equity ratio
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,062
  2,184
  2,312
  2,445
  2,583
  2,727
  2,877
  3,033
  3,196
  3,366
  3,744
  3,930
  4,124
  4,326
  4,538
  4,760
  4,992
  5,234
  5,488
  5,754
  6,033
  6,325
  6,631
  6,952
  7,288
  7,641
  8,010
  8,398
  8,805
  9,231
Depreciation, amort., depletion, $m
  1,370
  1,443
  1,520
  1,599
  1,682
  1,768
  1,858
  1,951
  2,049
  2,151
  1,982
  2,093
  2,209
  2,330
  2,456
  2,589
  2,727
  2,872
  3,024
  3,183
  3,350
  3,524
  3,707
  3,899
  4,099
  4,310
  4,531
  4,762
  5,005
  5,260
Funds from operations, $m
  3,432
  3,628
  3,832
  4,044
  4,265
  4,495
  4,735
  4,984
  5,245
  5,517
  5,726
  6,023
  6,332
  6,656
  6,995
  7,349
  7,719
  8,107
  8,513
  8,938
  9,383
  9,849
  10,338
  10,851
  11,388
  11,951
  12,541
  13,161
  13,810
  14,491
Change in working capital, $m
  -202
  -210
  -218
  -227
  -236
  -246
  -256
  -267
  -278
  -290
  -303
  -316
  -330
  -345
  -361
  -378
  -395
  -414
  -433
  -453
  -475
  -497
  -521
  -546
  -573
  -600
  -630
  -660
  -693
  -726
Cash from operations, $m
  3,633
  3,837
  4,050
  4,271
  4,501
  4,740
  4,990
  5,251
  5,523
  5,807
  6,029
  6,339
  6,663
  7,002
  7,356
  7,726
  8,114
  8,520
  8,946
  9,391
  9,858
  10,347
  10,860
  11,397
  11,960
  12,551
  13,171
  13,821
  14,503
  15,218
Maintenance CAPEX, $m
  -1,023
  -1,095
  -1,168
  -1,245
  -1,324
  -1,407
  -1,493
  -1,583
  -1,676
  -1,774
  -1,876
  -1,982
  -2,093
  -2,209
  -2,330
  -2,456
  -2,589
  -2,727
  -2,872
  -3,024
  -3,183
  -3,350
  -3,524
  -3,707
  -3,899
  -4,099
  -4,310
  -4,531
  -4,762
  -5,005
New CAPEX, $m
  -722
  -735
  -764
  -795
  -827
  -861
  -897
  -935
  -975
  -1,018
  -1,062
  -1,109
  -1,159
  -1,211
  -1,266
  -1,324
  -1,386
  -1,450
  -1,518
  -1,590
  -1,665
  -1,745
  -1,828
  -1,916
  -2,008
  -2,106
  -2,208
  -2,315
  -2,429
  -2,547
Cash from investing activities, $m
  -1,745
  -1,830
  -1,932
  -2,040
  -2,151
  -2,268
  -2,390
  -2,518
  -2,651
  -2,792
  -2,938
  -3,091
  -3,252
  -3,420
  -3,596
  -3,780
  -3,975
  -4,177
  -4,390
  -4,614
  -4,848
  -5,095
  -5,352
  -5,623
  -5,907
  -6,205
  -6,518
  -6,846
  -7,191
  -7,552
Free cash flow, $m
  1,889
  2,007
  2,117
  2,231
  2,349
  2,472
  2,600
  2,733
  2,871
  3,015
  3,091
  3,248
  3,411
  3,582
  3,760
  3,945
  4,140
  4,343
  4,555
  4,777
  5,009
  5,253
  5,507
  5,774
  6,053
  6,346
  6,653
  6,975
  7,312
  7,665
Issuance/(repayment) of debt, $m
  979
  1,016
  1,057
  1,099
  1,144
  1,191
  1,241
  1,294
  1,349
  1,407
  1,469
  1,534
  1,603
  1,675
  1,751
  1,832
  1,916
  2,006
  2,100
  2,199
  2,303
  2,413
  2,528
  2,650
  2,778
  2,912
  3,054
  3,203
  3,359
  3,523
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  979
  1,016
  1,057
  1,099
  1,144
  1,191
  1,241
  1,294
  1,349
  1,407
  1,469
  1,534
  1,603
  1,675
  1,751
  1,832
  1,916
  2,006
  2,100
  2,199
  2,303
  2,413
  2,528
  2,650
  2,778
  2,912
  3,054
  3,203
  3,359
  3,523
Total cash flow (excl. dividends), $m
  2,868
  3,024
  3,174
  3,330
  3,493
  3,663
  3,841
  4,027
  4,220
  4,423
  4,560
  4,782
  5,014
  5,257
  5,511
  5,777
  6,056
  6,348
  6,655
  6,976
  7,312
  7,665
  8,036
  8,424
  8,831
  9,258
  9,707
  10,177
  10,671
  11,189
Retained Cash Flow (-), $m
  -768
  -805
  -837
  -871
  -906
  -944
  -983
  -1,025
  -1,069
  -1,115
  -1,164
  -1,215
  -1,269
  -1,327
  -1,387
  -1,451
  -1,518
  -1,589
  -1,663
  -1,742
  -1,824
  -1,911
  -2,003
  -2,099
  -2,200
  -2,307
  -2,419
  -2,537
  -2,661
  -2,791
Prev. year cash balance distribution, $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 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
  2,100
  2,219
  2,337
  2,459
  2,587
  2,720
  2,858
  3,002
  3,152
  3,308
  3,397
  3,567
  3,744
  3,930
  4,124
  4,326
  4,538
  4,760
  4,991
  5,234
  5,488
  5,754
  6,033
  6,325
  6,631
  6,952
  7,288
  7,640
  8,010
  8,398
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
  2,013
  2,031
  2,034
  2,025
  2,005
  1,974
  1,931
  1,876
  1,811
  1,734
  1,613
  1,522
  1,424
  1,319
  1,211
  1,099
  987
  877
  769
  665
  568
  477
  395
  322
  258
  203
  156
  118
  87
  63
Current shareholders' claim on cash, %
  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 11.3
Price to Sales 0.6
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 6.7
Price to Free Cash Flow 14.5
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 $38946 million for the last fiscal year's total revenue generated by Magna International. The default revenue input number comes from 2017 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 6.9% 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 92.8%.

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 5.4% 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 26.3%.

Life of production assets of 10 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 -7.5%. 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 - $11228 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 372 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 $22.2 billion.

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COMPANY NEWS

▶ Second Quarter 2018 Results Conference Call   [Jul-19-18 03:35PM  GlobeNewswire]
▶ Second Quarter 2018 Results Conference Call   [Jul-18-18 03:44PM  GlobeNewswire]
▶ Magna Wins Three Innovation Awards From SPE Europe   [Jul-17-18 10:35AM  GlobeNewswire]
▶ Tesla (TSLA) Raises Prices in China as Trade Spat Escalates   [Jul-10-18 02:30PM  InvestorPlace]
▶ 5 Excellent Dividend Growth Stocks to Evade Trade Fears   [Jun-18-18 02:15PM  InvestorPlace]
▶ Magna to Produce the new Z4 for the BMW Group   [Jun-05-18 06:00AM  GlobeNewswire]
▶ 4 Stocks to Tap the Rebound in Canadian Economy   [May-21-18 09:26AM  Zacks]
▶ Best TSX Stocks That Can Protect Your Portfolio   [May-13-18 04:05PM  Simply Wall St.]
▶ Magna CEO Says Nafta Region Needs to Be Competitive With Asia   [May-11-18 02:21PM  Bloomberg Video]
▶ Magna Announces 2018 Annual Meeting Results   [May-10-18 02:16PM  GlobeNewswire]
▶ Magna: 1Q Earnings Snapshot   [07:39AM  Associated Press]
▶ Magna Announces Record First Quarter Results   [07:01AM  GlobeNewswire]
▶ Top 3 Undervalued Stocks For The Month   [May-05-18 10:02AM  Simply Wall St.]
▶ Magna Posts Updated Financial Review for 2017   [May-04-18 02:02PM  GlobeNewswire]
▶ Magna Wins LiDAR Business With BMW Group   [07:00AM  GlobeNewswire]
▶ Magna International opens a new plant in Mexico   [Apr-19-18 12:04PM  Reuters]
▶ Estimating The Fair Value Of Magna International Inc (TSE:MG)   [Apr-16-18 11:14AM  Simply Wall St.]
▶ Best Defensive Stocks To Buy   [Apr-12-18 04:05PM  Simply Wall St.]
▶ Cheap Stocks To Watch Out For In April   [Apr-03-18 10:02AM  Simply Wall St.]
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