BorgWarner Inc.

LSE:0HOU Stock Report

Market Cap: US$7.0b

BorgWarner Valuation

Is 0HOU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0HOU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HOU ($32.83) is trading below our estimate of fair value ($89.68)

Significantly Below Fair Value: 0HOU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HOU?

Key metric: As 0HOU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HOU. This is calculated by dividing 0HOU's market cap by their current earnings.
What is 0HOU's PE Ratio?
PE Ratio7.6x
EarningsUS$919.00m
Market CapUS$6.99b

Price to Earnings Ratio vs Peers

How does 0HOU's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.7x
TIFS TI Fluid Systems
12.7x21.4%UK£949.8m
ABDP AB Dynamics
47.3x16.7%UK£459.1m
CTA CT Automotive Group
3.9xn/aUK£28.1m
JNEO Journeo
10.9x-1.3%UK£44.6m
0HOU BorgWarner
7.6x4.8%US$7.0b

Price-To-Earnings vs Peers: 0HOU is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (18.7x).

Price to Earnings Ratio vs Industry

How does 0HOU's PE Ratio compare vs other companies in the European Auto Components Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0HOU 7.6xIndustry Avg. 9.3xNo. of Companies8PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HOU is good value based on its Price-To-Earnings Ratio (7.6x) compared to the European Auto Components industry average (9.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0HOU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0HOU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.6x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: 0HOU is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0HOU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.83
US$41.24
+25.6%
10.2%US$51.00US$32.00n/a17
Dec ’25US$34.32
US$41.45
+20.8%
9.9%US$51.00US$32.00n/a17
Nov ’25US$33.27
US$41.51
+24.7%
9.9%US$50.00US$32.00n/a17
Oct ’25US$35.58
US$41.04
+15.4%
10.7%US$51.00US$32.00n/a17
Sep ’25US$33.79
US$41.10
+21.6%
10.1%US$51.00US$32.00n/a18
Aug ’25US$33.83
US$41.32
+22.1%
8.5%US$50.00US$37.00n/a18
Jul ’25US$31.57
US$41.88
+32.7%
10.2%US$52.00US$36.00n/a17
Jun ’25US$35.60
US$41.83
+17.5%
10.0%US$52.00US$36.00n/a18
May ’25US$32.99
US$39.67
+20.2%
13.8%US$52.00US$33.00n/a18
Apr ’25US$34.88
US$41.06
+17.7%
22.5%US$72.00US$33.00n/a18
Mar ’25US$31.28
US$40.94
+30.9%
23.1%US$72.00US$33.00n/a17
Feb ’25US$34.11
US$44.23
+29.7%
18.3%US$72.00US$36.00n/a18
Jan ’25US$35.91
US$45.40
+26.4%
18.5%US$72.00US$36.00n/a18
Dec ’24US$33.94
US$45.62
+34.4%
18.8%US$72.00US$36.00US$34.3218
Nov ’24US$37.01
US$52.23
+41.1%
14.1%US$72.00US$44.00US$33.2717
Oct ’24US$40.98
US$53.07
+29.5%
14.1%US$72.00US$44.00US$35.5817
Sep ’24US$41.26
US$53.14
+28.8%
14.5%US$72.00US$44.00US$33.7916
Aug ’24US$46.43
US$54.02
+16.3%
12.8%US$72.00US$46.00US$33.8316
Jul ’24US$49.03
US$56.12
+14.5%
14.3%US$81.00US$42.00US$31.5716
Jun ’24US$45.39
US$55.81
+23.0%
15.1%US$81.00US$42.00US$35.6016
May ’24US$47.02
US$56.19
+19.5%
13.8%US$80.00US$42.00US$32.9916
Apr ’24US$48.76
US$55.88
+14.6%
13.7%US$80.00US$42.00US$34.8817
Mar ’24US$50.91
US$55.82
+9.7%
13.4%US$79.00US$42.00US$31.2817
Feb ’24US$47.33
US$50.51
+6.7%
17.5%US$78.00US$36.10US$34.1116
Jan ’24US$40.43
US$49.48
+22.4%
23.4%US$78.00US$36.10US$35.9117
Dec ’23US$42.55
US$48.71
+14.5%
23.9%US$78.00US$36.10US$33.9417

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 13:58
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

BorgWarner Inc. is covered by 45 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Luke JunkBaird
Ishan MajumdarBaptista Research
Brian JohnsonBarclays