Is BorgWarner, Inc. overvalued or undervalued?

Nov 10 2025 11:13 AM IST
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As of November 7, 2025, BorgWarner, Inc. is considered overvalued with a valuation grade of "very expensive," reflected by its low P/E ratio of 8 compared to industry peers, despite a high dividend yield of 121.12% and a ROE of 19.69%.
As of 7 November 2025, the valuation grade for BorgWarner, Inc. moved from fair to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 1.49, and an EV to EBITDA ratio of 5.44. In comparison to peers, BorgWarner's P/E ratio is significantly lower than CNH Industrial NV at 19.42 and AGCO Corp. at 14.36, suggesting that while it may seem attractive at first glance, it is not aligned with industry standards.

The substantial dividend yield of 121.12% and a ROE of 19.69% may initially suggest strong performance; however, these figures do not compensate for the overall valuation context. Additionally, while the stock's performance against the S&P 500 is not available, the significant change in valuation grade reinforces the notion that BorgWarner is currently overvalued in the market.
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