Is BorgWarner, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for BorgWarner, Inc. has moved from fair to very expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 8, an EV to EBITDA of 5.44, and a Price to Book Value of 1.49, all of which suggest that the stock is priced higher relative to its earnings and assets compared to its peers. In comparison, CNH Industrial NV has a P/E ratio of 19.42 and an EV to EBITDA of 10.28, while AGCO Corp. shows a P/E of 14.36 and an EV to EBITDA of 10.77, highlighting that BorgWarner is trading at a significant discount in terms of earnings.
Despite the recent stock performance showing a 33.97% year-to-date return compared to the S&P 500's 13.30%, the overall valuation metrics indicate that BorgWarner, Inc. is overvalued in the current market context.