What is BorgWarner Inc. (BWA) DCF Fair Value and Intrinsic Value in 2026?

BorgWarner Inc. (BWA) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is BorgWarner Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

BorgWarner Inc. operates in the Consumer Cyclical sector (Auto Parts) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is BorgWarner Inc.'s financial health rating and Piotroski F-Score?

BorgWarner Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor BorgWarner Inc. (BWA) for quarterly SEC filing thesis breaks?

LocalAlpha audits BorgWarner Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBWA

BWA

BorgWarner Inc.Consumer Cyclical / Auto PartsINTACT

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.

Share Price

$66.65

52W: $40.5 - $78.82

DCF Fair Value

$91.51

+27.2% MoS

Thesis Hub

P/E (TTM)

32.8x

ROIC

Operating Margin

10.6%

FCF Yield

7.9%

Debt / Equity

0.7x

Piotroski Score

8/9

Altman Z-Score

4.81

Market Cap

$13.6B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$91.51

MOS Buy Target (-25%)

$68.63

Valuation Overlays: DCF Fair Value ($91.51) 25% MOS Buy Target ($68.63) Revised Graham ($30.70) Graham Number ($35.50)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$66.65

DCF Fair Value

$90.81

+26.6% MoS

Starting Free Cash Flow ($M)$1,066M

$100M$1,066M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,700M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$8.8B

PV of Terminal Value

$11.5B

Implied Enterprise Value

$20.2B

Implied Equity Value

$18.5B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,123	$1,182	$1,245	$1,311	$1,380	$1,442	$1,507	$1,575	$1,646	$1,720
Present Value (PV)	$1,030	$995	$961	$928	$897	$860	$824	$790	$758	$726

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-87.7% Premium

$35.51

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $2.03BVPS: $27.60

Revised Graham Formula-117.1% Premium

$30.70

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings7.4% Yield

$4.96 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.0BYield: 7.4%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-0.3% CAGR (Next 10 Yrs)

At the current price of $66.65, the market is assuming the business will compound Free Cash Flow at -0.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BWA with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for BorgWarner Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 10.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: BorgWarner Inc. (BWA) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for BorgWarner Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, BorgWarner Inc. has an estimated DCF intrinsic fair value of $91.51 per share compared to its current market price of $66.65. This represents an estimated 27.2% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $35.50.