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%.
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% |
(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% |