MAL.TO
Magellan Aerospace Corp
Price:  
15.37 
CAD
Volume:  
12,267
Canada | Aerospace & Defense

MAL.TO Fair Value

-79.8 %
Upside

What is the fair value of MAL.TO?

As of 2025-05-18, the Fair Value of Magellan Aerospace Corp (MAL.TO) is 3.11 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 15.37 CAD, the upside of Magellan Aerospace Corp is -79.8%.

Is MAL.TO a good investment?

With the market price of 15.37 CAD and our fair value calculation, Magellan Aerospace Corp (MAL.TO) is not a good investment. Investing in MAL.TO stocks now will result in a potential loss of 79.8%.

15.37 CAD
Stock Price
3.11 CAD
Fair Price
FAIR VALUE CALCULATION

MAL.TO Fair Value

Peter Lynch's formula is:

MAL.TO Fair Value
= Earnings Growth Rate x TTM EPS
MAL.TO Fair Value
= 5 x 0.62
MAL.TO Fair Value
= 3.11

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income3.3-0.98-21.699.2535.495
YoY growth-95.1%-129.6%-2120.3%142.6%283.8%-383.7%

MAL.TO Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Kaman Corp1,3030.37.06-84.7%
Astronics Corp1,070-0.5-2.29-107.6%
Ducommun Inc1,0102.459.15-13%
Heroux Devtek Inc1,0941.59.75-70%
National Presto Industries Inc6225.838.93-55.3%
TAT Technologies Ltd37915.1-85.3%
Park Aerospace Corp2800.41.83-86.9%
Innovative Solutions and Support Inc1690.49.51-1%
Butler National Corp930.25.06266.6%
CPI Aerostructures Inc420.36.3394.8%

MAL.TO Fair Value - Key Data

Market Cap (mil)878
P/E24.7x
Forward P/E16.8x
EPS0.62
Avg earnings growth rate-383.7%
TTM earnings35

MAL.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.