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Magna InternationalMGA -1.63%77 Debt-to-EBITDA is 3.07 as of Mar. 2026, which is 77% above its 10-year median of 1.73. GuruFocus rates MGA with a GF Score™ of 77/100 and a GF Value™ of $48.89 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,096 Vehicles & Parts companies, Magna International ranks better than 55.2% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Magna International's Debt-to-EBITDA or its related term are showing as below:
MGA'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.81 Med: 1.73 Max: 2.42
Current: 1.97
During the past 13 years, the highest Debt-to-EBITDA Ratio of Magna International was 2.42. The lowest was 0.81. And the median was 1.73.
MGA's Debt-to-EBITDA is ranked better than 55.2% of 1096
companies
in the Vehicles & Parts industry
Industry Median: 2.25
vs MGA: 1.97
Magna International (NYSE:MGA) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Magna International Debt-to-EBITDA Related Terms
Magna International Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Magna International's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Magna International's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Magna International Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Magna International's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Magna International (MGA) has a Debt-to-EBITDA of 3.07 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Magna International. This is 77% above median its historical median of 1.73. Over the past decade, Magna International's Debt-to-EBITDA has ranged from 0.81 to 2.42. According to the industry distribution chart, Magna International ranks #491 out of 1096 companies in the Vehicles & Parts industry, placing it in the top 44.8%.
Is Magna International's Debt-to-EBITDA too high?
Magna International's current Debt-to-EBITDA of 3.07 is 77% above median its 10-year median of 1.73. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 2.42. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. Magna International's value of 3.07 is 36.4% above this industry median. Based on the distribution chart, Magna International ranks #491 out of 1096 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Magna International has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magna International's Debt-to-EBITDA compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Magna International ranks #491 out of 1096 companies for Debt-to-EBITDA. This puts Magna International in the upper half of its industry. The industry median Debt-to-EBITDA is 2.25. Magna International's value of 3.07 is 36.4% above this benchmark. Historically, Magna International's own Debt-to-EBITDA has ranged from 0.81 to 2.42 over the past decade. While the company's 10-year median is 1.73 vs. the industry median of 2.25, Magna International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magna International's current Debt-to-EBITDA of 3.07 is 36.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Magna International. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magna International's current Debt-to-EBITDA is 3.07, which is 77% above median its own 10-year median of 1.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magna International stock overvalued right now?
Based on GuruFocus' analysis, Magna International (MGA) is currently considered Significantly Overvalued. The stock's GF Value™ is $48.89, compared to a current price of $66.46 — trading 35.9% above its estimated fair value. The current Debt-to-EBITDA is 3.07, which is 77% above median its 10-year median of 1.73 and 36.4% above the Vehicles & Parts industry median of 2.25. Magna International's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Magna International (MGA), the current Debt-to-EBITDA is 3.07 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Magna International (MGA) Overvalued in 2026?
Based on GuruFocus' analysis, Magna International stock appears to be overvalued.
The current stock price of $66.46 is trading 35.9% above its estimated GF Value™ of $48.89.
GuruFocus considers Magna International to be Significantly Overvalued.
Key valuation signals for MGA:
Debt-to-EBITDA: 3.07 (77% above median its 10-year median of 1.73)
GF Value™: $48.89 vs. price of $66.46 (35.9% above fair value)
Industry Position: 36.4% above the Vehicles & Parts median (#491 of 1096)
No single metric tells the full story. See the MGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magna International prides itself on an entrepreneurial culture and a corporate constitution that outlines the distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2025, 48.6% of Magna's USD 42 billion of revenue came from North America, while Europe accounted for approximately 38% and Asia the remainder. The firm's top six customers constituted 75.9% of revenue, with the top three being GM, Mercedes, and Ford. GM was the largest contributor at 15.6%. Magna was founded in 1957, has about 144,000 employees, and is based in Aurora, Ontario.
77GF Score
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