Latest Ratios: P/E Ratio 51.5x · EV/EBITDA 7.6x · ROE 4.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.6B | $9.8B | $7.1B | $8.4B | $8.4B | $9.5B | $7.3B | $7.9B | $6.4B | $9.5B | $7.5B |
| Enterprise Value | $15.4B | $11.6B | $9.4B | $10.8B | $11.6B | $12.2B | $9.6B | $9.1B | $7.8B | $11.1B | $9.2B |
| P/E Ratio → | 51.49 | 35.20 | 21.19 | 13.43 | 8.87 | 17.70 | 14.53 | 10.57 | 6.88 | 21.61 | 12.57 |
| P/S Ratio | 0.95 | 0.68 | 0.51 | 0.59 | 0.66 | 0.64 | 0.72 | 0.78 | 0.61 | 0.97 | 0.82 |
| P/B Ratio | 2.54 | 1.74 | 1.25 | 1.39 | 1.12 | 1.31 | 1.08 | 1.63 | 1.47 | 2.48 | 2.26 |
| P/FCF | 11.52 | 8.27 | 10.49 | 17.62 | 8.84 | 14.88 | 10.06 | 14.97 | 11.04 | 15.32 | 13.96 |
| P/OCF | 8.24 | 5.92 | 5.29 | 6.42 | 5.34 | 7.27 | 5.94 | 7.83 | 5.68 | 8.05 | 7.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.81 | 0.67 | 0.76 | 0.92 | 0.82 | 0.95 | 0.89 | 0.74 | 1.14 | 1.02 |
| EV / EBITDA | 7.56 | 5.69 | 4.86 | 5.95 | 7.22 | 5.64 | 6.48 | 5.45 | 4.52 | 6.88 | 6.13 |
| EV / EBIT | 11.68 | 18.65 | 14.54 | 9.92 | 11.49 | 13.29 | 9.13 | 6.84 | 6.15 | 9.82 | 33.61 |
| EV / FCF | — | 9.85 | 13.80 | 22.64 | 12.24 | 19.08 | 13.32 | 17.28 | 13.41 | 17.97 | 17.28 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.7% | 18.7% | 18.5% | 18.1% | 18.7% | 19.3% | 18.8% | 20.7% | 21.2% | 21.6% | 21.3% |
| Operating Margin | 9.2% | 9.2% | 8.9% | 8.7% | 8.4% | 9.3% | 9.4% | 12.1% | 12.2% | 12.4% | 12.3% |
| Net Profit Margin | 1.9% | 1.9% | 2.4% | 4.4% | 7.5% | 3.6% | 4.9% | 7.3% | 8.8% | 4.5% | 1.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.9% | 4.9% | 5.7% | 9.2% | 12.8% | 7.7% | 8.6% | 16.2% | 22.8% | 12.3% | 3.4% |
| ROA | 2.0% | 2.0% | 2.4% | 4.0% | 5.6% | 3.3% | 3.9% | 7.5% | 9.4% | 4.7% | 1.3% |
| ROIC | 12.9% | 12.9% | 11.5% | 9.6% | 7.7% | 10.9% | 9.5% | 15.7% | 17.3% | 17.2% | 15.7% |
| ROCE | 12.7% | 12.7% | 12.0% | 10.5% | 8.3% | 11.1% | 9.8% | 16.4% | 17.1% | 17.2% | 16.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.74 | 0.74 | 0.76 | 0.65 | 0.57 | 0.62 | 0.60 | 0.42 | 0.49 | 0.57 | 0.67 |
| Debt / EBITDA | 2.05 | 2.05 | 2.25 | 2.16 | 2.68 | 2.10 | 2.69 | 1.22 | 1.23 | 1.35 | 1.47 |
| Net Debt / Equity | — | 0.33 | 0.39 | 0.39 | 0.43 | 0.37 | 0.35 | 0.25 | 0.32 | 0.43 | 0.54 |
| Net Debt / EBITDA | 0.91 | 0.91 | 1.16 | 1.32 | 2.00 | 1.24 | 1.58 | 0.73 | 0.80 | 1.01 | 1.18 |
| Debt / FCF | — | 1.58 | 3.30 | 5.02 | 3.40 | 4.20 | 3.26 | 2.30 | 2.37 | 2.65 | 3.32 |
| Interest Coverage | 6.29 | 6.29 | 7.69 | 14.92 | 14.23 | 11.17 | 14.45 | 24.20 | 21.42 | 16.10 | 3.25 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.07 | 2.07 | 1.79 | 1.65 | 1.56 | 1.74 | 1.62 | 1.65 | 1.59 | 1.46 | 1.39 |
| Quick Ratio | 1.70 | 1.70 | 1.45 | 1.30 | 1.27 | 1.33 | 1.28 | 1.30 | 1.26 | 1.15 | 1.09 |
| Cash Ratio | 0.70 | 0.70 | 0.57 | 0.41 | 0.26 | 0.49 | 0.43 | 0.36 | 0.31 | 0.22 | 0.21 |
| Asset Turnover | — | 1.04 | 1.01 | 0.98 | 0.74 | 0.90 | 0.63 | 1.05 | 1.04 | 1.00 | 1.03 |
| Inventory Turnover | 9.65 | 9.65 | 9.17 | 8.86 | 8.44 | 7.81 | 6.42 | 10.00 | 10.63 | 10.03 | 11.13 |
| Days Sales Outstanding | — | 75.90 | 74.07 | 80.39 | 71.79 | 71.71 | 105.39 | 69.28 | 60.03 | 75.23 | 67.97 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.2% | 1.4% | 1.5% | 1.9% | 1.7% | 2.0% | 1.8% | 2.2% | 1.3% | 1.5% |
| Payout Ratio | 43.0% | 43.0% | 29.0% | 20.8% | 17.1% | 30.2% | 29.2% | 18.8% | 15.3% | 28.2% | 95.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 2.8% | 4.7% | 7.4% | 11.3% | 5.7% | 6.9% | 9.5% | 14.5% | 4.6% | 8.0% |
| FCF Yield | 8.7% | 12.1% | 9.5% | 5.7% | 11.3% | 6.7% | 9.9% | 6.7% | 9.1% | 6.5% | 7.2% |
| Buyback Yield | 3.7% | 5.2% | 5.6% | 2.1% | 2.9% | 0.0% | 3.0% | 1.3% | 2.3% | 1.1% | 3.9% |
| Total Shareholder Yield | 4.6% | 6.4% | 7.0% | 3.7% | 4.8% | 1.7% | 5.0% | 3.0% | 4.6% | 2.4% | 5.4% |
| Shares Outstanding | — | $216M | $225M | $234M | $237M | $240M | $214M | $207M | $210M | $212M | $215M |
Cyclical OEM demand volatility
Based on current market data, BorgWarner trades at a forward P/E of 13.11, which suggests investors are pricing the company as a transitional entity rather than a pure-play growth stock, especially when compared to the significantly higher multiples commanded by pure-play electronic component manufacturers like Amphenol.
The valuation discount relative to high-growth electronics peers appears to stem from the market's skepticism regarding the terminal value of legacy combustion-related assets. While the forward P/E is modest, the 53.21 TTM P/E highlights the distortion caused by recent restructuring charges, making forward-looking metrics more reliable for assessing the company's current earnings power.
As reported in financial statements, BorgWarner's ROIC has remained consistently low, fluctuating between 2.4% and 3.8% over the last ten quarters, which indicates that the company is currently struggling to generate returns that exceed its cost of capital during this intensive electrification investment phase.
The persistent gap between ROIC and the company's historical performance suggests that the heavy R&D and capital expenditure required for e-propulsion are not yet yielding the expected margin expansion. Investors should monitor whether these returns improve as the company scales its newer product lines and moves past the peak of its current restructuring cycle.
According to quarterly data, the cash conversion cycle has remained elevated, averaging over 50 days, which reflects the inherent difficulty of managing inventory and receivables across a complex, multi-segment global supply chain that is highly sensitive to the production schedules of major automotive original equipment manufacturers.
The fluctuation in DSO and DIO suggests that BorgWarner lacks significant pricing power to dictate terms to its larger OEM customers, forcing the company to absorb the costs of inventory holding during production lulls. This inefficiency appears to be a structural drag on cash flow that warrants further investigation into the company's supply chain management capabilities.
The P/E ratio is frequently misapplied to BorgWarner, as it fails to account for the significant non-recurring restructuring charges and equity-method income that distort net earnings, thereby masking the company's true operational cash-generating ability during its ongoing pivot toward an electrified powertrain business model.
Analysts should instead prioritize EV/EBITDA or P/FCF to better understand the underlying cash flow generation, as these metrics are less sensitive to the accounting noise associated with the Phinia spin-off and ongoing asset impairments. Relying on P/E alone may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BWA stock.
BorgWarner Inc.'s current P/E ratio is 51.5x. The historical average is 18.9x. This places it at the 96th percentile of its historical range.
BorgWarner Inc.'s current EV/EBITDA is 7.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.6x.
BorgWarner Inc.'s return on equity (ROE) is 4.9%. The historical average is 11.2%.
Based on historical data, BorgWarner Inc. is trading at a P/E of 51.5x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
BorgWarner Inc.'s current dividend yield is 0.83% with a payout ratio of 43.0%.
BorgWarner Inc. has 18.7% gross margin and 9.2% operating margin.
BorgWarner Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.