BorgWarner Inc.

NYSE:BWA Stock Report

Market Cap: US$5.8b

BorgWarner Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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.

Discounted Cash Flow
Simply Wall St
US$62.36
Fair Value
57.6% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: BWA ($26.44) is trading below our estimate of fair value ($62.36)

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.

The above table shows the Price to Earnings ratio for BWA. This is calculated by dividing BWA's market cap by their current earnings.
What is BWA's PE Ratio?
PE Ratio15.8x
EarningsUS$367.00m
Market CapUS$5.75b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BWA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
ALV Autoliv
9.9x10.0%US$6.2b
GNTX Gentex
12.1x9.7%US$4.8b
MOD Modine Manufacturing
25.4x31.7%US$4.0b
LEA Lear
8.3x18.7%US$4.1b
BWA BorgWarner
15.8x18.4%US$5.8b

Price-To-Earnings vs Peers: BWA is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SEVC.F Sono Group
0.2xn/aUS$7.41m
CDTI CDTi Advanced Materials
1.7xn/aUS$1.81m
No more companies available in this PE range
BWA 15.8xIndustry Avg. 12.1xNo. of Companies4PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BWA is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the US Auto Components industry average (12.1x).

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.

BWA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: BWA is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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 BWA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.44
US$37.18
+40.6%
10.7%US$46.00US$31.00n/a17
Apr ’26US$28.54
US$37.48
+31.3%
10.5%US$46.00US$31.00n/a17
Mar ’26US$29.77
US$38.59
+29.6%
10.7%US$46.00US$31.00n/a17
Feb ’26US$31.90
US$39.42
+23.6%
11.8%US$49.00US$31.00n/a17
Jan ’26US$31.79
US$41.24
+29.7%
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$33.44
US$41.51
+24.1%
9.9%US$50.00US$32.00n/a17
Oct ’25US$35.49
US$41.04
+15.6%
10.7%US$51.00US$32.00n/a17
Sep ’25US$34.07
US$41.10
+20.6%
10.1%US$51.00US$32.00n/a18
Aug ’25US$34.03
US$41.32
+21.4%
8.5%US$50.00US$37.00n/a18
Jul ’25US$31.49
US$41.88
+33.0%
10.2%US$52.00US$36.00n/a17
Jun ’25US$35.66
US$41.83
+17.3%
10.0%US$52.00US$36.00n/a18
May ’25US$32.87
US$39.67
+20.7%
13.8%US$52.00US$33.00n/a18
Apr ’25US$35.04
US$41.06
+17.2%
22.5%US$72.00US$33.00US$28.5418
Mar ’25US$31.15
US$40.94
+31.4%
23.1%US$72.00US$33.00US$29.7717
Feb ’25US$34.48
US$44.23
+28.3%
18.3%US$72.00US$36.00US$31.9018
Jan ’25US$35.85
US$45.40
+26.6%
18.5%US$72.00US$36.00US$31.7918
Dec ’24US$33.95
US$45.62
+34.4%
18.8%US$72.00US$36.00US$34.3218
Nov ’24US$37.11
US$52.23
+40.8%
14.1%US$72.00US$44.00US$33.4417
Oct ’24US$40.37
US$53.07
+31.5%
14.1%US$72.00US$44.00US$35.4917
Sep ’24US$41.29
US$53.14
+28.7%
14.5%US$72.00US$44.00US$34.0716
Aug ’24US$46.47
US$54.02
+16.2%
12.8%US$72.00US$46.00US$34.0316
Jul ’24US$48.91
US$56.12
+14.7%
14.3%US$81.00US$42.00US$31.4916
Jun ’24US$45.27
US$55.81
+23.3%
15.1%US$81.00US$42.00US$35.6616
May ’24US$47.81
US$56.19
+17.5%
13.8%US$80.00US$42.00US$32.8716
Apr ’24US$49.11
US$55.88
+13.8%
13.7%US$80.00US$42.00US$35.0417
AnalystConsensusTarget
Consensus Narrative from 17 Analysts
US$37.18
Fair Value
28.9% undervalued intrinsic discount
17
Number of Analysts

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 Analysis2025/04/14 06:17
End of Day Share Price 2025/04/14 00:00
Earnings2024/12/31
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