BWA Relative Valuation
BWA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BWA is overvalued; if below, it's undervalued.
Historical Valuation
Borgwarner Inc (BWA) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.69 is considered Undervalued compared with the five-year average of 9.46. The fair price of Borgwarner Inc (BWA) is between 49.77 to 64.61 according to relative valuation methord. Compared to the current price of 43.39 USD , Borgwarner Inc is Undervalued By 12.82%.
Relative Value
Fair Zone
49.77-64.61
Current Price：43.39
12.82%
Undervalued
8.69
PE
1Y
3Y
5Y
Trailing
Forward
5.10
EV/EBITDA
Borgwarner Inc. (BWA) has a current EV/EBITDA of 5.10. The 5-year average EV/EBITDA is 5.68. The thresholds are as follows: Strongly Undervalued below 4.03, Undervalued between 4.03 and 4.85, Fairly Valued between 6.50 and 4.85, Overvalued between 6.50 and 7.32, and Strongly Overvalued above 7.32. The current Forward EV/EBITDA of 5.10 falls within the Historic Trend Line -Fairly Valued range.
7.42
EV/EBIT
Borgwarner Inc. (BWA) has a current EV/EBIT of 7.42. The 5-year average EV/EBIT is 8.22. The thresholds are as follows: Strongly Undervalued below 5.67, Undervalued between 5.67 and 6.95, Fairly Valued between 9.50 and 6.95, Overvalued between 9.50 and 10.77, and Strongly Overvalued above 10.77. The current Forward EV/EBIT of 7.42 falls within the Historic Trend Line -Fairly Valued range.
0.64
PS
Borgwarner Inc. (BWA) has a current PS of 0.64. The 5-year average PS is 0.61. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.51, Fairly Valued between 0.72 and 0.51, Overvalued between 0.72 and 0.82, and Strongly Overvalued above 0.82. The current Forward PS of 0.64 falls within the Historic Trend Line -Fairly Valued range.
5.56
P/OCF
Borgwarner Inc. (BWA) has a current P/OCF of 5.56. The 5-year average P/OCF is 5.57. The thresholds are as follows: Strongly Undervalued below 2.55, Undervalued between 2.55 and 4.06, Fairly Valued between 7.08 and 4.06, Overvalued between 7.08 and 8.59, and Strongly Overvalued above 8.59. The current Forward P/OCF of 5.56 falls within the Historic Trend Line -Fairly Valued range.
11.08
P/FCF
Borgwarner Inc. (BWA) has a current P/FCF of 11.08. The 5-year average P/FCF is 11.74. The thresholds are as follows: Strongly Undervalued below 2.01, Undervalued between 2.01 and 6.87, Fairly Valued between 16.60 and 6.87, Overvalued between 16.60 and 21.46, and Strongly Overvalued above 21.46. The current Forward P/FCF of 11.08 falls within the Historic Trend Line -Fairly Valued range.
Borgwarner Inc (BWA) has a current Price-to-Book (P/B) ratio of 1.55. Compared to its 3-year average P/B ratio of 1.35 , the current P/B ratio is approximately 14.73% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about 8.71% higher. Borgwarner Inc (BWA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.89%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.75% , the current FCF yield is about -100.00% lower.
1.55
P/B
Median3y
1.35
Median5y
1.43
13.41
FCF Yield
Median3y
8.89
Median5y
7.75
Competitors Valuation Multiple
The average P/S ratio for BWA's competitors is , providing a benchmark for relative valuation. Borgwarner Inc Corp (BWA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.12%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BWA increased by 36.49% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 41.78 to 70.06.
The secondary factor is the Revenue Growth, contributed 4.12%to the performance.
Overall, the performance of BWA in the past 1 year is driven by P/E Change. Which is more unsustainable.
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