BorgWarner Inc.

BIT:1BWA Stock Report

Market Cap: €6.4b

BorgWarner Valuation

Is 1BWA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1BWA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€54.98
Fair Value
47.9% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: 1BWA (€28.64) is trading below our estimate of fair value (€54.98)

Significantly Below Fair Value: 1BWA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1BWA?

Key metric: As 1BWA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1BWA. This is calculated by dividing 1BWA's market cap by their current earnings.
What is 1BWA's PE Ratio?
PE Ratio23.2x
EarningsUS$311.00m
Market CapUS$7.33b

Price to Earnings Ratio vs Peers

How does 1BWA's PE Ratio compare to its peers?

The above table shows the PE ratio for 1BWA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10x
BRE Brembo
10.3x11.75%€2.5b
SGF Sogefi
13.1x12.15%€258.9m
PIRC Pirelli & C
12.3x11.21%€6.1b
STLAM Stellantis
4.4x14.52%€24.2b
1BWA BorgWarner
23.2x21.72%€7.3b

Price-To-Earnings vs Peers: 1BWA is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (10x).

Price to Earnings Ratio vs Industry

How does 1BWA's PE Ratio compare vs other companies in the European Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1BWA 23.2xIndustry Avg. 13.1xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1BWA is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the European Auto Components industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1BWA'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.

1BWA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1BWA's Price-To-Earnings Fair Ratio for valuation analysis.

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 1BWA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.64
€33.00
+15.25%
8.51%€38.07€27.69n/a16
Jun ’26€29.30
€33.05
+12.81%
9.16%€38.76€28.19n/a16
May ’26€24.95
€31.40
+25.84%
10.46%€36.88€25.46n/a16
Apr ’26n/a
€34.62
0%
10.53%€42.49€28.64n/a17
Mar ’26n/a
€37.21
0%
10.68%€44.35€29.89n/a17
Feb ’26n/a
€37.79
0%
11.78%€46.97€29.72n/a17
Jan ’26n/a
€39.25
0%
10.17%€48.53€30.45n/a17
Dec ’25n/a
€39.54
0%
9.92%€48.65€30.53n/a17
Nov ’25n/a
€38.38
0%
9.90%€46.24€29.59n/a17
Oct ’25n/a
€37.08
0%
10.74%€46.07€28.91n/a17
Sep ’25n/a
€37.64
0%
10.08%€46.71€29.31n/a18
Aug ’25n/a
€38.29
0%
8.53%€46.34€34.29n/a18
Jul ’25n/a
€39.10
0%
10.16%€48.54€33.61n/a17
Jun ’25n/a
€38.83
0%
10.02%€48.27€33.42€29.3018
May ’25n/a
€37.28
0%
13.76%€48.87€31.02€24.9518
Apr ’25n/a
€37.71
0%
22.46%€66.13€30.31n/a18
Mar ’25n/a
€37.84
0%
23.15%€66.54€30.50n/a17
Feb ’25n/a
€40.81
0%
18.35%€66.43€33.21n/a18
Jan ’25n/a
€41.59
0%
18.49%€65.95€32.98n/a18
Dec ’24n/a
€41.58
0%
18.80%€65.62€32.81n/a18
Nov ’24n/a
€49.34
0%
14.07%€68.02€41.57n/a17
Oct ’24n/a
€49.45
0%
14.10%€67.09€41.00n/a17
Sep ’24n/a
€48.91
0%
14.51%€66.28€40.50n/a16
Aug ’24n/a
€48.54
0%
12.78%€64.69€41.33n/a16
Jul ’24n/a
€52.06
0%
14.26%€75.14€38.96n/a16
Jun ’24n/a
€51.87
0%
15.11%€75.28€39.03n/a16
AnalystConsensusTarget
Consensus Narrative from 16 Analysts
€33.27
Fair Value
13.9% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/17 06:28
End of Day Share Price 2025/06/17 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

BorgWarner Inc. is covered by 42 analysts. 16 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
Dan LevyBarclays