Published on 30 May 2024 on Simply Wall St. via Yahoo Finance
Magna International Inc.'s (TSE:MG) Intrinsic Value Is Potentially 91% Above Its Share Price
Key Insights
Magna International's estimated fair value is CA$115 based on 2 Stage Free Cash Flow to EquityCurrent share price of CA$60.58 suggests Magna International is potentially 48% undervalued The US$80.48 analyst price target for MG is 30% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Magna International Inc. (TSE:MG) by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward.