Magna International is to continue to go out of hand in December
 | By Ellen Johnson | Macroaxis Story |
Is Magna International valuation justified? Here I will cover the organisation prospective on valuation to give you a better outlook on taking a position in this stock. What is Magna International Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Magna International to move above current price in 30 days from now is about 19.2%. The Magna International probability density function shows the probability of Magna International Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Magna International has beta of 0.6504 indicating as returns on market go up, Magna International average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Magna International will be expected to be much smaller as well. Additionally, the company has an alpha of 0.1335 implying that it can potentially generate 0.1335% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
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Reviewed by Rifka Kats
The company has 5.14 B in debt with debt to equity (D/E) ratio of 43.0 . This implies that the company may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. Magna International one year expected dividend income is about $0.67 per share. Earning per share calculations of Magna International is based on official Zacks consensus of 5 analysts regarding the entity future annual earnings. Given the historical accuracy of 97.02%, the future earnings per share of the company is estimated to be 5.9783 with lowest and highest values of 5.9 and 6.05 respectively. Please note that this consensus of annual earnings estimates for the stock is an estimate of EPS before non-recurring items and including employee stock options expenses. We determine the current worth of Magna International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Magna International based exclusively on its fundamental and basic technical indicators. By analyzing Magna International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Magna International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Magna International. We calculate exposure to Magna International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Magna International's related companies.
Magna International Investment Alerts
Magna investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Magna International performance across your portfolios.Please check all investment alerts for MagnaMagna International Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Magna value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Magna International competition to find correlations between indicators driving the intrinsic value of Magna.Magna International Gross Profit
Magna International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Magna International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Magna International Gross Profit growth over the last 10 years. Please check Magna International's gross profit and other fundamental indicators for more details.
What is driving Magna International Investor Appetite?
Magna International makes use of its assets almost 6.0E-4 %, making $0.0 for each dollar of assets held by the firm. A positive assets utilization conveys that the company is being slightly more effective with each dollar of assets it secures. Strictly speaking assets utilization of Magna International shows how effective it operates for each dollar spent on its assets. The latest bullish price patterns experienced by current Magna International shareholders may encourage investors to take a closer look at the firm as it closed today at a share price of 53.87 on 512482.000 in trading volume. The company directors and management have been very successful with rebalancing the firm components at opportune times to take advantage of market volatility in October. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2768. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Magna International defends 7.28 b current liabilities. Magna International is selling for under 54.97. That is 1.83 percent up. Today lowest is 53.87. Magna International Debt Current is somewhat stable at the moment. Magna International Consolidated Income is somewhat stable at the moment. Additionally, Magna International Earning Before Interest and Taxes EBIT is decreasing over the last 4 years. On the whole, I belive Magna International is currently fairly valued. It Responds to market and projects low probability of distress in the next two years. Our present buy/sell advice on the company is Buy.
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