BorgWarner is a product leader in highly engineered components and systems for powertrains around the world. The company was founded in 1987 and is based in Auburn Hills, Michigan.
BWA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Borgwarner Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Borgwarner Inc ranked in the 69th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 176.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Borgwarner Inc ended up being:
Borgwarner Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 21.02% of tickers in our DCF set.
BWA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 21.02% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Borgwarner Inc has a reliance on debt greater than merely 23.25% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BWA, try GLXZ, DBI, MHO, IAA, and FBHS.
AUBURN HILLS, Mich. , May 21, 2020 /PRNewswire/ -- BorgWarner, a global leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles, announced that it is Great Place to Work-Certified™ in the United States and Mexico . Certification is a significant achievement. Using validated employee feedback gathered with Great Place to Work's rigorous, data-driven For All methodology, certification confirms 7 out of 10 employees have a consistently positive experience at BorgWarner. Great Place to Work is the global authority on workplace culture, employee experience and the leadership behaviors proven to deliver market-leading revenue and increased innovation. … Full story available on Benzinga.com
AUBURN HILLS, Mich. and LONDON, May 6, 2020 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) and Delphi Technologies PLC (NYSE: DLPH) today announced that the companies have amended certain terms of the definitive transaction agreement they originally entered into on January 28, 2020 under…
Companies Reporting Before The Bell General Motors Company (NYSE: GM ) is projected to report quarterly earnings at $0.33 per share on revenue of $31.12 billion. CVS Health Corporation (NYSE: CVS ) is expected to report quarterly earnings at $1.63 per share on revenue of $64.06 billion. Bunge Limited (NYSE: BG ) is estimated to report quarterly earnings at $0.69 per share on revenue of $10.15 billion. Waste Management, Inc. (NYSE: WM ) is projected to report quarterly earnings at $0.90 per share on revenue of $3.69 billion. American Electric Power Company, Inc. (NYSE: AEP ) is estimated to report quarterly earnings at $1.11 per share on revenue of $4.22 billion. BorgWarner Inc. (NYSE: BWA ) is expected to report quarterly earnings at $0.55 per share on revenue of $2.09 billion. Freseniu...