BWA Valuation

Borgwarner Inc

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42.990

+0.33(0.774%)1D

Overview
Forecast
Valuation
Earnings

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 9.03 is considered Undervalued compared with the five-year average of 9.55. The fair price of Borgwarner Inc (BWA) is between 49.98 to 64.16 according to relative valuation methord. Compared to the current price of 42.66 USD , Borgwarner Inc is Undervalued By 14.64%.

Relative Value

Fair Zone

49.98-64.16

Current Price：42.66

14.64%

Undervalued

9.03

Trailing

Forward

5.47

EV/EBITDA

Borgwarner Inc. (BWA) has a current EV/EBITDA of 5.47. The 5-year average EV/EBITDA is 5.67. The thresholds are as follows: Strongly Undervalued below 4.02, Undervalued between 4.02 and 4.84, Fairly Valued between 6.50 and 4.84, Overvalued between 6.50 and 7.33, and Strongly Overvalued above 7.33. The current Forward EV/EBITDA of 5.47 falls within the Historic Trend Line -Fairly Valued range.

7.78

EV/EBIT

Borgwarner Inc. (BWA) has a current EV/EBIT of 7.78. The 5-year average EV/EBIT is 8.21. The thresholds are as follows: Strongly Undervalued below 5.65, Undervalued between 5.65 and 6.93, Fairly Valued between 9.50 and 6.93, Overvalued between 9.50 and 10.78, and Strongly Overvalued above 10.78. The current Forward EV/EBIT of 7.78 falls within the Historic Trend Line -Fairly Valued range.

0.64

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.

5.85

P/OCF

Borgwarner Inc. (BWA) has a current P/OCF of 5.85. The 5-year average P/OCF is 5.81. The thresholds are as follows: Strongly Undervalued below 2.08, Undervalued between 2.08 and 3.95, Fairly Valued between 7.67 and 3.95, Overvalued between 7.67 and 9.54, and Strongly Overvalued above 9.54. The current Forward P/OCF of 5.85 falls within the Historic Trend Line -Fairly Valued range.

11.64

P/FCF

Borgwarner Inc. (BWA) has a current P/FCF of 11.64. The 5-year average P/FCF is 12.08. The thresholds are as follows: Strongly Undervalued below 1.97, Undervalued between 1.97 and 7.02, Fairly Valued between 17.14 and 7.02, Overvalued between 17.14 and 22.19, and Strongly Overvalued above 22.19. The current Forward P/FCF of 11.64 falls within the Historic Trend Line -Fairly Valued range.

Borgwarner Inc (BWA) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 1.33 , the current P/B ratio is approximately 17.53% higher. Relative to its 5-year average P/B ratio of 1.44, the current P/B ratio is about 7.91% higher. Borgwarner Inc (BWA) has a Forward Free Cash Flow (FCF) yield of approximately 12.70%. Compared to its 3-year average FCF yield of 8.31%, the current FCF yield is approximately 52.82% lower. Relative to its 5-year average FCF yield of 7.39% , the current FCF yield is about 71.91% lower.

1.56

P/B

Median3y

1.33

Median5y

1.44

12.70

FCF Yield

Median3y

8.31

Median5y

7.39

Competitors Valuation Multiple

The average P/S ratio for BWA's competitors is 1.02, providing a benchmark for relative valuation. Borgwarner Inc Corp (BWA) exhibits a P/S ratio of 0.64, which is -36.66% above the industry average. Given its robust revenue growth of 0.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SiteOne Landscape Supply Inc

Performance Decomposition

Market capitalization of BWA increased by 18.31% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.22 to 43.09.

The secondary factor is the Revenue Growth, contributed 0.97%to the performance.

Overall, the performance of BWA in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.97%

3.60B → 3.64B

Revenue Growth

-30.12%

9.13 → 6.38

Margin Expansion

47.46%

29.22 → 43.09

P/E Change

18.31%