The Discounted Cash Flow (DCF) valuation of Linamar Corp (LNR.TO) is 72.50 CAD. With the latest stock price at 65.19 CAD, the upside of Linamar Corp based on DCF is 11.2%.

Is LNR.TO a buy or a sell?

Based on the latest price of 65.19 CAD and our DCF valuation, Linamar Corp (LNR.TO) is a buy. Buying LNR.TO stocks now will result in a potential gain of 11.2%.

	Range	Selected
WACC / Discount Rate	6.3% - 8.1%	7.2%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	50.49 - 119.82	72.50
Upside	-22.6% - 83.8%	11.2%

65.19 CAD

Stock Price

72.50 CAD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

LNR.TO DCF Valuation: Revenue & Expenses Forecast

(CAD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	10,582	10,330	10,666	11,758	12,057	12,298
% Growth	9%	-2%	3%	10%	3%	2%

Cost of goods sold	(9,078)	(8,862)	(9,150)	(10,086)	(10,343)	(10,550)
% of Revenue	86%	86%	86%	86%	86%	86%

Selling, G&A expenses	(588)	(574)	(593)	(654)	(670)	(684)
% of Revenue	6%	6%	6%	6%	6%	6%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(440)	(429)	(443)	(489)	(501)	(511)
% of Revenue	4%	4%	4%	4%	4%	4%

Tax expense	(218)	(118)	(122)	(135)	(138)	(141)
Tax rate	46%	25%	25%	25%	25%	25%

Net profit	258	346	358	394	404	412
% Margin	2%	3%	3%	3%	3%	3%