On July 21, 2026, BorgWarner Inc BWA shares rose 3.3% to a current price of $63.63. The stock's performance has been volatile, with a 52-week range of $34.27 to $78.82. Over the past month, shares have declined by 11.4%, while year-to-date, the stock is up by 42.0% and has seen a remarkable 82.2% increase over the past year.
- GF Valueâ„¢ verdict: Current price is $63.63 vs GF Valueâ„¢ of $39.09, indicating the stock is 62.8% overvalued.
- GF Scoreâ„¢ of 75/100 suggests that the stock is above average in terms of its fundamental strength.
- Recent insider activity shows that insiders sold $5.7 million in shares over the last three months with no buying, which may indicate a cautious outlook.
Is BWA Overvalued or Undervalued?
BorgWarner Inc's current price of $63.63 is significantly above the GF Valueâ„¢ estimate of $39.09, indicating that the stock is 62.8% overvalued. This overvaluation suggests limited potential for price appreciation in the near term, as the stock trades at a premium compared to its intrinsic value. The GF Valuation label categorizes BWA as "Significantly Overvalued," highlighting the risks associated with investing at current price levels. A margin of safety is essential for investors; in this case, the high overvaluation implies that potential investors may face a greater risk of capital loss if the market corrects its price to align more closely with the GF Valueâ„¢ estimate.
GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation discrepancies, potential investors may want to exercise caution and consider waiting for a more favorable entry point.
How Does BWA's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 38.5x | 12.4x (5-Year Median) |
| Forward P/E | 12.2x | - |
The current P/E (TTM) of 38.5x is significantly above its 5-year median P/E of 12.4x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis is consistent with the GF Valueâ„¢ verdict, which suggests that BWA is overvalued at its current price level.
What Does BWA's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 75/100 |
| Financial Strength | 7/10 |
| Profitability | 8/10 |
| Growth | 5/10 |
| Valuation | 3/10 |
| Momentum | 6/10 |
The GF Scoreâ„¢ of 75/100 indicates that BorgWarner Inc has a strong fundamental profile, particularly in profitability (8/10) and financial strength (7/10). However, its valuation rank of 3/10 shows that it is underperforming relative to its peers in terms of valuation metrics. The growth rank of 5/10 suggests moderate growth potential, while the momentum rank of 6/10 indicates that the stock has had a recent uptick in performance. Overall, while BWA shows strong profitability and financial stability, its valuation concerns warrant careful consideration.
What Are Insiders Doing with BWA Stock?
Recent insider activity at BorgWarner Inc has been predominantly selling, with insiders unloading $5.7 million worth of shares over the past three months and no reported purchases. This trend of selling may suggest that insiders have a cautious outlook on the stock's future performance, as they are capitalizing on the current high price levels. Such patterns can be indicative of insider sentiment, which is an important factor for investors to consider when assessing the stock's potential.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, BorgWarner Inc BWA is currently overvalued, trading significantly above its intrinsic value estimate. Investors may want to approach this stock with caution given the high valuation and recent insider selling activity. The strong GF Scoreâ„¢ suggests solid fundamentals, but the overvaluation indicates potential risks for price corrections in the future.
For the complete analysis, visit the BorgWarner Inc BWA stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is BWA's GF Scoreâ„¢?
BWA's GF Scoreâ„¢ is 75/100, indicating it's above average in terms of its fundamental strength, which suggests potential for long-term returns.
Is BWA overvalued or undervalued?
BWA is currently overvalued, with a GF Valueâ„¢ estimate of $39.09 compared to the current price of $63.63, suggesting a significant premium.
What is BWA's P/E ratio?
BWA's P/E (TTM) ratio is 38.5x, which is substantially above its 5-year median P/E of 12.4x, confirming its overvalued status based on historical metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
