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:
Below please find a table outlining a discounted cash flow forecast for BWA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Borgwarner Inc ranked in the 46th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for BWA, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 14.89; that's higher than 86.53% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Borgwarner Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.47% 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 only 11.47% of tickers in our DCF set.
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 AZO, CAL, UONE, WOW, and LOCO.
AUBURN HILLS, Mich. , Oct. 2, 2020 /PRNewswire/ -- BorgWarner Inc. announced today that Nelda J. Connors and David S. Haffner have been named to its Board of Directors. "We are pleased to welcome Nelda and David to BorgWarner's Board of Directors," said Alexis P. Michas, non-executive chairman of the board of BorgWarner. "Nelda is a recognized business leader with significant expertise in operations, financial management, quality, engineering and business strategy. Her knowledge of public company matters is a great complement to our Board. David has extensive experience managing the operations … Full story available on Benzinga.com
The European Union officially clears BorgWarner's (BWA) acquisition of Delphi Technologies (DLPH) right on the deadline of September 30. The two companies received FTC clearance on April 6 and resolved a drawdown dispute on May 6 to keep the merger on track. Analysts see the combined company as a strong...
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AUBURN HILLS, Mich., Sept. 17, 2020 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) ("BorgWarner") announced today that as of 5:00 p.m., New York City time, on September 16, 2020 (the "Early Tender Deadline"), $763.1 million in aggregate principal amount of outstanding 5.00% Senior Notes due…