5 models fit Magna International Inc. Common Stock and they disagree: 0 of 5 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Silver74
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionMagna International Inc. Common Stock (MGA)
Fair value (5 models)
$65.39
ACCE price target
$70.00
Rating
Fairly valued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $66.84 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 26 Sept 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 12:04 CEST.
Price used: $63.97 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
2.2% below
+2.2% to fair value
ACCE score
66
out of 100
Analysts
40% buy
20 covering
P/E
23.4x
forward 8.1x
1-year return
+38.9%
Dividend yield
3.09%
Magna International Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Magna International makes the structural parts of cars: body and chassis systems, seating, powertrain and electrification components, and complete vehicle assembly for OEM customers. Its scale across North American and European platforms, and the long multi-year sourcing cycles that lock in suppliers for the life of a vehicle program, give it a durable position with the automakers. The near-term case rests on electrification content and the cost-cutting it can deliver in a thin-margin business, though the 5.6% operating margin leaves little room for error. At a forward P/E of 8.4 against a trailing 24.0, the market is pricing in a sharp earnings recovery that has not yet shown up in reported results, with revenue growing only 3.3% and ROE at 6.5%. That gap between depressed trailing earnings and a cheap forward multiple is the reason to pull the filings and test whether the recovery is real.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Quality score lagging
Q-score of 40 is materially weak vs other pillars (G:56, V:92, M:84). Suggests earnings quality or cash conversion concerns despite strong reported growth.
moderate
Cyclical sector, thin margins
Net margin of 1.8% leaves little room for error. Auto parts is demand-sensitive; revenue growth of 3.3% YoY is modest for a cyclical recovery.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-09 · prices to Oct 23, 2026
Why it could do well
Forward P/E of 8.2x trades at half the sector median of 17.5x, suggesting deep undervaluation.
Free cash flow yield of 13.7% on $2.3B annual generation provides substantial shareholder returns.
Latest earnings beat expectations by 21.6% while analysts target 14.2% upside from current price.
Why it could disappoint
Net margin of 1.8% leaves almost no buffer against volume declines or cost pressures.
ROIC of 4.0% and ROE of 6.5% fall well short of the 5.2% risk-free rate.
Trailing P/E of 23.5x contradicts forward valuation, signaling earnings are expected to decline.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 30, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where MGA's valuation models land
Price
$63.97
Model fair value
$65.39
Model range
$22.41 to $126
Fair value $65.39
Price $63.97
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores