BorgWarner Valuation
| BWA Stock | USD 33.76 0.45 1.35% |
At this time, the firm appears to be undervalued. BorgWarner shows a prevailing Real Value of $42.5 per share. The current price of the firm is $33.76. Our model approximates the value of BorgWarner from analyzing the firm fundamentals such as Current Valuation of 10.02 B, profit margin of 0.06 %, and Return On Equity of 0.16 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting BorgWarner's valuation include:
Price Book 1.1834 | Enterprise Value 10 B | Enterprise Value Ebitda 5.8177 | Price Sales 0.5141 | Forward PE 7.77 |
Undervalued
Today
Please note that BorgWarner's price fluctuation is very steady at this time. Calculation of the real value of BorgWarner is based on 3 months time horizon. Increasing BorgWarner's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since BorgWarner is currently traded on the exchange, buyers and sellers on that exchange determine the market value of BorgWarner Stock. However, BorgWarner's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 33.76 | Real 42.5 | Target 51.05 | Hype 33.75 | Naive 32.69 |
The real value of BorgWarner Stock, also known as its intrinsic value, is the underlying worth of BorgWarner Company, which is reflected in its stock price. It is based on BorgWarner's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of BorgWarner's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of BorgWarner helps investors to forecast how BorgWarner stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of BorgWarner more accurately as focusing exclusively on BorgWarner's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use BorgWarner's intrinsic value based on its ongoing forecasts of BorgWarner's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against BorgWarner's closest peers. If more than one evaluation category is relevant for BorgWarner we suggest using both methods to arrive at a better estimate.
BorgWarner Cash |
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BorgWarner Valuation Trend
Comparing BorgWarner's enterprise value against its market capitalization is a good way to estimate the value of BorgWarner uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
BorgWarner Revenue by Product
BorgWarner Total Value Analysis
BorgWarner is currently anticipated to have company total value of 10.02 B with market capitalization of 7.28 B, debt of 3.93 B, and cash on hands of 1.24 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the BorgWarner fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.02 B | 7.28 B | 3.93 B | 1.24 B |
BorgWarner Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.18. Some equities with similar Price to Book (P/B) outperform the market in the long run. BorgWarner has Price/Earnings To Growth (PEG) ratio of 1.32. The entity last dividend was issued on the 2nd of December 2024. The firm had 1136:1000 split on the 5th of July 2023. Based on the analysis of BorgWarner's profitability, liquidity, and operating efficiency, BorgWarner may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0626 | 0.0817 |
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| Total Cash From Operating Activities | 1.5 B | 1.4 B |
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| Operating Income | 1.2 B | 1.2 B |
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BorgWarner Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BorgWarner has an asset utilization ratio of 98.24 percent. This suggests that the Company is making $0.98 for each dollar of assets. An increasing asset utilization means that BorgWarner is more efficient with each dollar of assets it utilizes for everyday operations.BorgWarner Ownership Allocation
The majority of BorgWarner outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in BorgWarner to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in BorgWarner. Please pay attention to any change in the institutional holdings of BorgWarner as this could imply that something significant has changed or is about to change at the company.BorgWarner Profitability Analysis
The company reported the last year's revenue of 14.2 B. Total Income to common stockholders was 702 M with profit before taxes, overhead, and interest of 3.1 B.BorgWarner Past Distributions to stockholders
| 16th of September 2024 | ||
| 17th of June 2024 | ||
| 15th of March 2024 | ||
| 15th of December 2023 | ||
| 15th of September 2023 | ||
| 15th of June 2023 | ||
| 15th of March 2023 | ||
| 15th of December 2022 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates BorgWarner's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in BorgWarner and how it compares across the competition.
About BorgWarner Valuation
The stock valuation mechanism determines BorgWarner's current worth on a weekly basis. Our valuation model uses a comparative analysis of BorgWarner. We calculate exposure to BorgWarner's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of BorgWarner's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.6 B | 1.3 B | |
| Pretax Profit Margin | 0.07 | 0.06 | |
| Operating Profit Margin | 0.08 | 0.06 | |
| Net Profit Margin | 0.04 | 0.03 | |
| Gross Profit Margin | 0.18 | 0.22 |
A single share of BorgWarner represents a small ownership stake in the entity. As a stockholder of BorgWarner, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
BorgWarner Dividends Analysis For Valuation
As of November 22, 2024, Dividends Paid is expected to decline to about 67.5 M. In addition to that, Dividend Yield is expected to decline to 0.02. The current year's Retained Earnings is expected to grow to about 6.5 B, whereas Retained Earnings Total Equity is forecasted to decline to about 4.6 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 130 M | 67.5 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.21 | 0.13 | |
| Dividend Paid And Capex Coverage Ratio | 1.45 | 1.15 |
There are various types of dividends BorgWarner can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of BorgWarner shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from BorgWarner directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When BorgWarner pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of BorgWarner by the value of the dividends paid out.
BorgWarner Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 234.4 M | |
| Quarterly Earnings Growth Y O Y | 3.909 | |
| Forward Price Earnings | 7.77 |
BorgWarner Current Valuation Indicators
Valuation refers to the process of determining the present value of BorgWarner and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value BorgWarner we look at many different elements of the entity such as BorgWarner's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as BorgWarner, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use BorgWarner's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes BorgWarner's worth.Complementary Tools for BorgWarner Stock analysis
When running BorgWarner's price analysis, check to measure BorgWarner's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BorgWarner is operating at the current time. Most of BorgWarner's value examination focuses on studying past and present price action to predict the probability of BorgWarner's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BorgWarner's price. Additionally, you may evaluate how the addition of BorgWarner to your portfolios can decrease your overall portfolio volatility.
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