BorgWarner Inc.

NYSE:BWA Stock Report

Market Cap: US$7.5b

BorgWarner Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($35.18) is trading below our estimate of fair value ($81.43)

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 Ratio8.4x
EarningsUS$919.00m
Market CapUS$7.46b

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 Average20.8x
MOD Modine Manufacturing
44.1x25.9%US$7.5b
ALV Autoliv
12.7x14.0%US$7.8b
GNTX Gentex
16.5x7.1%US$6.9b
LEA Lear
10.1x19.9%US$5.3b
BWA BorgWarner
8.4x4.8%US$7.5b

Price-To-Earnings vs Peers: BWA is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CDTI CDTi Advanced Materials
2.2xn/aUS$2.25m
No more companies available in this PE range
BWA 8.4xIndustry Avg. 20.3xNo. of Companies3PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BWA is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US Auto Components industry average (20.3x).

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 Ratio8.4x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: BWA is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

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$35.18
US$41.45
+17.8%
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$33.00n/a18
Mar ’25US$31.15
US$40.94
+31.4%
23.1%US$72.00US$33.00n/a17
Feb ’25US$34.48
US$44.23
+28.3%
18.3%US$72.00US$36.00n/a18
Jan ’25US$35.85
US$45.40
+26.6%
18.5%US$72.00US$36.00n/a18
Dec ’24US$33.95
US$45.62
+34.4%
18.8%US$72.00US$36.00n/a18
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
Mar ’24US$50.65
US$55.82
+10.2%
13.4%US$79.00US$42.00US$31.1517
Feb ’24US$48.28
US$50.51
+4.6%
17.5%US$78.00US$36.10US$34.4816
Jan ’24US$40.25
US$49.48
+22.9%
23.4%US$78.00US$36.10US$35.8517
Dec ’23US$42.66
US$48.71
+14.2%
23.9%US$78.00US$36.10US$33.9517
Nov ’23US$37.31
US$47.42
+27.1%
25.6%US$78.00US$35.00US$37.1117

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

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