BorgWarner Valuation
Is BWA * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 BWA * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: BWA * (MX$677.2) is trading below our estimate of fair value (MX$1291.79)
Significantly Below Fair Value: BWA * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BWA *?
Key metric: As BWA * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is BWA *'s PE Ratio? | |
|---|---|
| PE Ratio | 8.1x |
| Earnings | US$919.00m |
| Market Cap | US$7.46b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.7x |
| Enterprise Value/EBITDA | 5.5x |
| PEG Ratio | 1.7x |
Price to Earnings Ratio vs Peers
How does BWA *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 17.7x | ||
NEMAK A Nemak S. A. B. de C. V | 5x | 30.6% | Mex$5.2b |
MOD Modine Manufacturing | 46x | 25.9% | US$7.5b |
600741 HUAYU Automotive Systems | 7.4x | -2.8% | CN¥51.4b |
ALV Autoliv | 12.4x | 14.0% | US$7.8b |
BWA * BorgWarner | 8.1x | 4.8% | Mex$7.5b |
Price-To-Earnings vs Peers: BWA * is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (17.7x).
Price to Earnings Ratio vs Industry
How does BWA *'s PE Ratio compare vs other companies in the Global Auto Components Industry?
| 27 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 27 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: BWA * is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Global Auto Components industry average (17.9x).
Price to Earnings Ratio vs Fair Ratio
What is BWA *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 8.1x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BWA *'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?
Analyst Forecast: Insufficient data to show price forecast.
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