4 models fit BorgWarner Inc. Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Silver63
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionBorgWarner Inc. Common Stock (BWA)
Fair value (4 models)
$51.62
ACCE price target
$57.00
Rating
Fairly valued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $50.77 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $54.96 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
6.5% above
-6.1% to fair value
ACCE score
60
out of 100
Analysts
80% buy
15 covering
P/E
27.5x
forward 9.3x
1-year return
+25.7%
Dividend yield
1.23%
BorgWarner Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
BorgWarner makes powertrain components for light and commercial vehicles, including turbochargers, timing systems, and, increasingly, electric drive modules and battery-related products for EV platforms. Its edge is entrenched OEM relationships and engineering content on engine programs that take years to qualify and rarely get switched, which gives it a durable installed base even as combustion volumes decline. Near-term, the story rests on converting that EV and hybrid pipeline into revenue while cost actions protect margins; the 10.6% operating margin and 19.3% gross margin are the numbers to test against that conversion. Revenue growth of just 0.3% and an 8.1% ROE say the business is not compounding today, so the case depends on a margin or mix improvement showing up in reported results. A forward P/E of 11.9 against a trailing 29.3 suggests earnings are expected to recover sharply, which is exactly the assumption a deeper look should stress-test.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Revenue growth stalled
Revenue is up only 0.3% year on year and fell 1.1% quarter on quarter, against a 5-year revenue CAGR of 7.1%. The 30.1% earnings growth is not coming from sales.
moderate
Score slipped over 90 days
The ACCE score fell from 68 to 64 over 90 days, with quality at 52 and growth at 55.
moderate
Thin net margin
Net margin is 2.9% against a 10.6% operating margin, a wide gap that leaves little room if costs rise again. Debt to equity is 0.75 with $1.2B in free cash flow, which is manageable but not a buffer to lean on.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last 12 months reached $1.2B, and the stock's free cash flow yield stands at 10.2%.
Analysts rate the stock Buy or Strong Buy at 80%, with 12 of 15 positive, and their mean target sits 39.7% above the share price.
The company beat expected earnings per share by 12.7% in its latest report, and the forward P/E of 11.9x sits well below the sector median of 18.1x.
Why it could disappoint
Revenue grew only 0.3% over the past year, well below the 7.1% average annual pace of the last five years.
Return on invested capital is just 2.4% and net margin is 2.9%, leaving little cushion if sales slow further.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where BWA's valuation models land
Price
$54.96
Model fair value
$51.62
Model range
$27.61 to $94.44
Fair value $51.62
Price $54.96
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores