What is Mgic Investment Corp worth?
With the base-case assumptions below, a discounted cash flow model on Mgic Investment Corp's reported free cash flow gives $50.53 per share. The share price was $28.48 on September 25, 2026, 44% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -5.0% | 10.0% | $31.91 | +12% |
| Base | 0.0% | 9.0% | $50.53 | +77% |
| Bull | 5.0% | 8.0% | $85.29 | +199% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $63.41 | $67.27 | $71.99 | $77.88 | $85.47 |
| 8.0% | $53.85 | $56.35 | $59.31 | $62.86 | $67.20 |
| 9.0% | $46.84 | $48.55 | $50.53 | $52.83 | $55.55 |
| 10.0% | $41.48 | $42.70 | $44.08 | $45.65 | $47.47 |
| 11.0% | $37.24 | $38.14 | $39.13 | $40.26 | $41.53 |
Where the presets come from
Base: years 1 to 5 grow at Mgic Investment Corp's revenue growth rate over the last 5 fiscal years (0.2% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions