Magna International (TSX:MG) drew fresh attention at CES 2026 after showcasing next generation radar technology with scalability benefits. This prompted investors to reassess the auto supplier’s positioning in advanced driver assistance.
See our latest analysis for Magna International.
Alongside the CES radar showcase, Magna’s share price has been moving higher, with a 30 day share price return of 13.48% and a 90 day share price return of 27.16%. The 1 year total shareholder return of 41.98% contrasts with a modest 3 year total shareholder return of 2.46%, suggesting that momentum has recently picked up after a flatter period.
If CES put auto tech back on your radar, it could be a useful moment to scan other car makers too, including auto manufacturers for more ideas in the sector.
Magna’s recent returns and radar headlines are pulling fresh optimism into the stock, but its modest 3 year and slightly negative 5 year total returns hint at past hesitation. The key question is whether this is a genuine opportunity or if future growth is already priced in.
Analysts in the most followed narrative see fair value near US$69.38 per share, compared with Magna International’s last close of CA$77.53, setting up a valuation gap worth unpacking.
The analysts have a consensus price target of CA$65.906 for Magna International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of CA$80.21, and the most bearish reporting a price target of just CA$54.51.
Want to see what is sitting behind that split view? The narrative leans on steady margins, measured revenue assumptions and a future earnings multiple that is not especially aggressive. Curious how those pieces combine into a higher fair value than the consensus target suggests?
Result: Fair Value of $69.38 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, slower vehicle production and ongoing cost pressures, including inflation and higher labor costs, could easily upset the margin story that investors are leaning on.
Find out about the key risks to this Magna International narrative.
While the most followed narrative tags Magna as about 11.7% overvalued versus a fair value of roughly US$69.38, the current P/E of 15.3x tells a different story. It sits well below the North American Auto Components industry at 20.4x and the peer average at 27x.
That discount suggests the market is pricing in more risk or lower resilience than those peers, even though analysts still expect earnings to grow 12.67% per year and MG has high quality past earnings. The tension is clear, so which signal do you treat as more important right now: the narrative fair value gap or the P/E discount?
See what the numbers say about this price — find out in our valuation breakdown.
If you see the numbers differently or prefer to test your own assumptions directly, you can create a custom Magna story in minutes by starting with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Magna International.
If Magna has caught your attention, do not stop there. Widen your search with focused screeners that can help you surface other stocks that fit your style.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MG.TO.
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