Magna International trades at a forward P/E of 9.75 with improving margins in EV-linked segments, analysts note.
Magna International Inc. (MGA) shares were priced at $66.12 on May 28, reflecting a forward price-to-earnings ratio of 9.75, significantly below its trailing P/E of 28.00. Analysts highlight the company’s diversified automotive supply chain, spanning body systems, power and vision, seating, and vehicle manufacturing, positioning it for both traditional and electric vehicle markets.
The power and vision segment, tied to EV and autonomous technologies, saw margins rise from 3.4% to 6.5%, signaling operational recovery. Body systems generate $16–17 billion annually, while seating and complete vehicle manufacturing provide additional revenue streams. Magna’s global scale and entrenched industry position are cited as key strengths amid cyclical and structural shifts.
Investors note the valuation gap as a potential entry point, given the company’s exposure to high-growth automotive segments and improving financial metrics.