BorgWarner (BWA) stock has shown some interesting movement lately, catching the attention of investors evaluating its growth potential over the past few months. The company’s steady performance encourages a closer look at its recent returns and valuation.
See our latest analysis for BorgWarner.
BorgWarner’s share price momentum has definitely picked up, with a robust 18.71% gain over the last 90 days and a solid 33.30% year-to-date share price return reflecting greater optimism from investors. The stock’s total shareholder return stands at an impressive 21.06% over the past year and 45.00% over three years. This confirms that recent price action is building on a longer-term growth trend rather than a short-lived rally.
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The big question for investors is whether BorgWarner’s impressive momentum means there is still room for upside, or if recent gains suggest the market is already factoring in all future growth potential.
BorgWarner’s most widely followed narrative puts its fair value at $44.71, setting it above the last close of $41.75. The numbers spark debate about whether investor optimism is fully captured by the current price or if there is more under the hood.
Strong new business awards and accelerating RFQ (request for quotation) activity in both hybrid and electric vehicle (EV) product lines demonstrate robust demand for BorgWarner’s electrified propulsion systems, positioning the company to capitalize on the industry-wide transition to hybrid and electric vehicles, and supporting sustained top-line revenue growth as electrification continues to outpace ICE declines.
Want to uncover what is fueling this bullish target? The narrative hints at a game-changing mix of future earnings growth, margin expansion, and valuation moves that could catch even seasoned investors off guard. Find out the surprising assumptions powering this trajectory. Peek behind the curtain and see what Wall Street’s consensus really believes.
Result: Fair Value of $44.71 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent reliance on combustion products and unpredictability in the battery and charging systems segment could disrupt BorgWarner’s promising growth outlook.
Find out about the key risks to this BorgWarner narrative.
While analyst targets suggest BorgWarner is slightly undervalued, our DCF model paints a much brighter picture. The SWS DCF model places fair value closer to $62.28, about 33% above the current share price. Does this deeper undervaluation signal a significant opportunity, or does it reflect optimism baked into long-range forecasts?
Look into how the SWS DCF model arrives at its fair value.
If you want to dig into the details yourself or question these conclusions, you can quickly create your own perspective on BorgWarner’s data using Do it your way.
A great starting point for your BorgWarner research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
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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.
Companies discussed in this article include BWA.
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