Is BorgWarner, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for BorgWarner, Inc. has moved from fair to very expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 8, an EV to EBITDA of 5.44, and a PEG ratio of 0.22, which suggest that while the company may have some attractive growth potential, its current price does not reflect this adequately compared to its peers.
In comparison to peers, BorgWarner's P/E ratio of 11.57 is significantly lower than CNH Industrial NV's 19.42 and AGCO Corp.'s 14.36, highlighting its relative overvaluation. Additionally, the company has underperformed against the S&P 500 over the longer term, with 5-year returns of 30.03% compared to the S&P 500's 85.61%, reinforcing the notion that the stock may not be a compelling investment at its current price.