BorgWarner Inc. (NYSE:BWA), is not the largest company out there, but it saw a significant share price rise of 34% in the past couple of months on the NYSE. The company’s trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at BorgWarner’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Good news, investors! BorgWarner is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $63.41, but it is currently trading at US$43.13 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, BorgWarner’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
View our latest analysis for BorgWarner
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for BorgWarner. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder? Since BWA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on BWA for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BWA. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
If you’d like to know more about BorgWarner as a business, it’s important to be aware of any risks it’s facing. You’d be interested to know, that we found 4 warning signs for BorgWarner and you’ll want to know about them.
If you are no longer interested in BorgWarner, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.