Allison Transmission Holdings Inc vs Magna International Inc

Allison Transmission Holdings Inc (ALSN) is fairly valued and Magna International Inc (MGA) is fairly valued.

Against our estimates of intrinsic value, ALSN trades at the wider discount: a margin of safety of +2%, against -2% for MGA.

Values as of the 22 Sept 2026 close.

Allison Transmission Holdings Inc (ALSN)

Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $118.03; the price of $115.38 is 2% below that value, and 78% of that value comes from beyond year five.

Leak Score 30/100 on 3 of 12 signals

Magna International Inc (MGA)

Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $62.40; the price of $63.79 is 2% above that value, and 73% of that value comes from beyond year five.

Leak Score 14/100 on 3 of 12 signals

MetricALSNMGA
VerdictFairly valuedFairly valued
Price$115.38$63.79
Intrinsic value$118.03$62.40
Margin of safety+2%-2%
Leak Score30/100 (3/12)14/100 (3/12)
Market cap$9.5B$16.9B
Revenue growth, 5 years7.7%5.2%
Operating margin21.4%5.5%
Net margin12.0%1.8%
Return on equity28.4%6.3%
Debt to equity2.140.55
P/E18.3x23.2x
Forward P/E10.5x8.1x
P/B4.8x1.4x
Dividend yield1.0%3.1%

All stocks in Auto Parts