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Magna International (MGA) — WACC Analysis

WACC Breakdown

Magna International (MGA) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.6%. The capital structure is 79.0% equity and 21.0% debt.

Interpretation

A WACC of 8.0% is moderate, reflecting the market's balanced risk assessment of Magna International.

Investors can compare MGA's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

MGA WACC: 8.00% for Magna International

Current inputs imply a 8.90% cost of equity and a 5.87% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Magna International Common Stock (MGA) WACC Results
Weighted Average Cost of Capital
8.00%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
4.64%
Pre-Tax Cost of Debt5.87%
Tax Rate21.00%
Tax Shield1.23%
Capital Structure
Equity: 78.96%($17.58B)
Debt: 21.04%($4685.00M)
Equity Component
7.03%
78.96% × 8.90%
Debt Component
0.98%
21.04% × 4.64%

Magna International (MGA) WACC in context

Magna International (MGA) currently screens with an estimated WACC of 8.00%. That blends a 8.90% cost of equity, a 5.87% pre-tax cost of debt, and a 78.96% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What MGA WACC implies

A 8.00% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MGA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 78.96% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.