BorgWarner Inc. (BWA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+10.8%

$57.70

vs $52.10 price

Levered DCF

$85.63

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.05

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	34.93×	21.05×	13.18×	8.83×	17.54×	14.46×	10.51×	6.84×
P/B	1.77×	1.28×	1.41×	1.15×	1.36×	1.13×	1.67×	1.51×
P/S	0.67×	0.5×	0.58×	0.66×	0.64×	0.71×	0.77×	0.6×
EV / EBITDA	8.89×	7.09×	6.36×	7.4×	8.13×	6.05×	5.12×	4.57×
Gross margin	18.7%	18.5%	18.1%	18.7%	19.3%	18.8%	20.7%	21.2%
Operating margin	3.7%	8.9%	8.7%	8.4%	9.3%	9.4%	12.1%	12.2%
Net margin	1.9%	2.4%	4.4%	7.5%	3.6%	4.9%	7.3%	8.8%
Current ratio	2.07×	1.79×	1.65×	1.56×	1.74×	1.62×	1.65×	1.59×
Debt / equity	0.75×	0.79×	0.67×	0.6×	0.65×	0.62×	0.43×	0.5×
Interest coverage	5.41×	14.99×	16.89×	14.87×	16.9×	13.11×	22.4×	21.82×
Dividend yield	1.2%	1.4%	1.6%	1.9%	1.7%	2.0%	1.8%	2.2%
Payout ratio	43.0%	29.0%	20.8%	17.1%	30.2%	29.2%	18.8%	15.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.1%	6.1%	10.7%	13.1%	7.7%	7.8%	15.9%	22.0%
Return on invested capital	3.3%	9.3%	8.1%	6.5%	8.7%	4.6%	10.1%	13.5%
Return on assets	2.0%	2.4%	4.3%	5.6%	3.2%	3.1%	7.7%	9.2%
Free cash flow yield	12.5%	9.6%	5.8%	11.4%	8.4%	10.0%	6.7%	9.1%
Earnings yield	2.9%	4.8%	7.6%	11.3%	5.7%	6.9%	9.5%	14.6%
Enterprise value	$11.4B	$9.4B	$10.6B	$11.6B	$12.1B	$9.6B	$9.1B	$7.7B
Net debt / EBITDA	1.36×	1.71×	1.43×	2.06×	1.8×	1.49×	0.69×	0.81×
Cash conversion cycle (days)	51	49	42	39	49	58	46	29