Is BorgWarner Inc. (BWA) Undervalued?
Based on the current stock price of $45.57 and a P/E ratio of 64.18,BorgWarner Inc. has a PEG ratio of 7.71.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 7.71, BWA appears to be potentially overvalued relative to its growth rate of 8.33%.
Based on a PEG ratio of 6.54 (adjusted for dividends).
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How we analyzed BWA
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 64.18and dividing it by the annual growth rate of 8.33%.
PEG = 64.18 (P/E) ÷ 8.33 (Growth) = 7.71
Frequently Asked Questions about BWA
What is the current PEG Ratio for BorgWarner Inc. (BWA)?+
The current PEG Ratio for BorgWarner Inc. is 7.71. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is BWA stock undervalued right now?+
Based on the PEG ratio of 7.71, BorgWarner Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for BWA?+
The PEGY ratio for BorgWarner Inc. is 6.54. This metric accounts for dividend yield (1.49%), providing a more complete valuation picture.