BorgWarner (MIL:1BWA) Cyclically Adjusted PB Ratio: 2.38 (As of Jul. 29, 2026) — 23% Above Median

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MIL:1BWA BorgWarner Inc MIL:1BWA
51 GF Score
Price €55.22
GF Value €32.35
Valuation Significantly Overvalued
! 1 Warning Sign
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What is BorgWarner Cyclically Adjusted PB Ratio?

BorgWarner MIL:1BWA 51 Cyclically Adjusted PB Ratio is 2.38 as of Jul. 29, 2026, which is 23% above its 10-year median of 1.93. GuruFocus rates MIL:1BWA with a GF Score™ of 51/100 and a GF Value™ of €32.35 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,026 Vehicles & Parts companies, BorgWarner ranks worse than 67.06% on this metric.

As of today (2026-07-29), BorgWarner's current share price is €55.22. BorgWarner's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2026 was €23.22. BorgWarner's Cyclically Adjusted PB Ratio for today is 2.38.

The historical rank and industry rank for BorgWarner's Cyclically Adjusted PB Ratio or its related term are showing as below:

MIL:1BWA' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 0.96   Med: 1.93   Max: 3.54
Current: 2.24

During the past years, BorgWarner's highest Cyclically Adjusted PB Ratio was 3.54. The lowest was 0.96. And the median was 1.93.

MIL:1BWA's Cyclically Adjusted PB Ratio is ranked worse than
67.06% of 1026 companies
in the Vehicles & Parts industry
Industry Median: 1.27 vs MIL:1BWA: 2.24

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

BorgWarner's adjusted book value per share data for the three months ended in Mar. 2026 was €23.000. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €23.22 for the trailing ten years ended in Mar. 2026.

Shiller PE for Stocks: The True Measure of Stock Valuation


BorgWarner  (MIL:1BWA) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


BorgWarner Cyclically Adjusted PB Ratio Related Terms


BorgWarner Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for BorgWarner's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

BorgWarner Cyclically Adjusted PB Ratio Chart

BorgWarner Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.91 1.51 1.42 1.20 1.63

BorgWarner Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.07 1.23 1.59 1.63 1.92

MIL:1BWA vs MOD, APTV, AUR: Cyclically Adjusted PB Ratio Comparison

For the Auto Parts subindustry, BorgWarner's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BorgWarner Cyclically Adjusted PB Ratio vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where BorgWarner's Cyclically Adjusted PB Ratio falls into.


MIL:1BWA
51GF Score
BorgWarner Inc MIL:1BWA
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

BorgWarner Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

BorgWarner's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=55.22/23.22
=2.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

BorgWarner's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2026 is calculated as:

For example, BorgWarner's adjusted Book Value per Share data for the three months ended in Mar. 2026 was:

Adj_Book=Book Value per Share/CPI of Mar. 2026 (Change)*Current CPI (Mar. 2026)
=23/330.2130*330.2130
=23.000

Current CPI (Mar. 2026) = 330.2130.

BorgWarner Quarterly Data

Book Value per Share CPI Adj_Book
201606 15.293 241.018 20.953
201609 15.520 241.428 21.227
201612 14.373 241.432 19.658
201703 14.995 243.801 20.310
201706 15.231 244.955 20.532
201709 15.224 246.819 20.368
201712 14.898 246.524 19.956
201803 15.095 249.554 19.974
201806 16.231 251.989 21.270
201809 16.732 252.439 21.887
201812 17.840 251.233 23.448
201903 18.249 254.202 23.706
201906 18.830 256.143 24.275
201909 19.599 256.759 25.206
201912 20.520 256.974 26.368
202003 20.683 258.115 26.460
202006 19.756 257.797 25.306
202009 16.522 260.280 20.961
202012 22.114 260.474 28.035
202103 22.299 264.877 27.799
202106 23.015 271.696 27.972
202109 23.560 274.310 28.361
202112 25.645 278.802 30.374
202203 26.720 287.504 30.689
202206 27.517 296.311 30.665
202209 29.223 296.808 32.512
202212 29.128 296.797 32.407
202303 29.653 301.836 32.441
202306 29.650 305.109 32.090
202309 22.993 307.789 24.668
202312 23.258 306.746 25.037
202403 23.586 312.332 24.936
202406 24.851 314.175 26.120
202409 25.361 315.301 26.560
202412 24.160 315.605 25.278
202503 24.084 319.799 24.868
202506 23.731 322.561 24.294
202509 23.852 324.800 24.250
202512 22.445 324.054 22.872
202603 23.000 330.213 23.000

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

What does a Cyclically Adjusted PB Ratio of 2.38 mean?
BorgWarner (MIL:1BWA) has a Cyclically Adjusted PB Ratio of 2.38 as of Jul. 29, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on BorgWarner and its competitors. This is 23% above median its historical median of 1.93. Over the past decade, BorgWarner's Cyclically Adjusted PB Ratio has ranged from 0.96 to 3.54. According to the industry distribution chart, BorgWarner ranks #688 out of 1026 companies in the Vehicles & Parts industry, placing it in the top 67.1%.
Is BorgWarner's Cyclically Adjusted PB Ratio too high?
BorgWarner's current Cyclically Adjusted PB Ratio of 2.38 is 23% above median its 10-year median of 1.93. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 3.54. The Vehicles & Parts industry median Cyclically Adjusted PB Ratio is 1.27. BorgWarner's value of 2.38 is 87.4% above this industry median. Based on the distribution chart, BorgWarner ranks #688 out of 1026 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, BorgWarner has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's Cyclically Adjusted PB Ratio compare to MOD and APTV?
According to the Vehicles & Parts industry distribution chart, BorgWarner ranks #688 out of 1026 companies for Cyclically Adjusted PB Ratio. This places BorgWarner in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.27. BorgWarner's value of 2.38 is 87.4% above this benchmark. Historically, BorgWarner's own Cyclically Adjusted PB Ratio has ranged from 0.96 to 3.54 over the past decade. While the company's 10-year median is 1.93 vs. the industry median of 1.27, BorgWarner has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Vehicles & Parts company?
The median Cyclically Adjusted PB Ratio among Vehicles & Parts companies is 1.27, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BorgWarner's current Cyclically Adjusted PB Ratio of 2.38 is 87.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on BorgWarner and its competitors. For the Vehicles & Parts industry, the median Cyclically Adjusted PB Ratio is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BorgWarner's current Cyclically Adjusted PB Ratio is 2.38, which is 23% above median its own 10-year median of 1.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BorgWarner stock overvalued right now?
Based on GuruFocus' analysis, BorgWarner (MIL:1BWA) is currently considered Significantly Overvalued. The stock's GF Value™ is €32.35, compared to a current price of €55.22 — trading 70.7% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 2.38, which is 23% above median its 10-year median of 1.93 and 87.4% above the Vehicles & Parts industry median of 1.27. BorgWarner's overall GF Score™ is 51/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For BorgWarner (MIL:1BWA), the current Cyclically Adjusted PB Ratio is 2.38 as of Jul. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is BorgWarner (MIL:1BWA) Overvalued in 2026?

Based on GuruFocus' analysis, BorgWarner stock appears to be overvalued. The current stock price of €55.22 is trading 70.7% above its estimated GF Value™ of €32.35. GuruFocus considers BorgWarner to be Significantly Overvalued.

Key valuation signals for MIL:1BWA:

  • Cyclically Adjusted PB Ratio: 2.38 (23% above median its 10-year median of 1.93)
  • GF Value™: €32.35 vs. price of €55.22 (70.7% above fair value)
  • GF Score™: 51/100 with 1 warning sign
  • Industry Position: 87.4% above the Vehicles & Parts median (#688 of 1026)

No single metric tells the full story. See the MIL:1BWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


BorgWarner Business Description

Address 3850 Hamlin Road, Auburn Hills, MI, USA, 48326
BorgWarner is a tier one supplier of turbo and thermal management technologies, drivetrain systems, powerdrive systems, and battery and charging systems mostly to automotive original equipment manufacturers. Its products aim to move a vehicle with as few electrons as possible, resulting in cleaner, cost-optimized, and more-efficient vehicles. Foundational products, the combustion vehicle business, contributes more than 80% to group revenue while BorgWarner transitions to becoming an electric vehicle-centric parts supplier (e-business). In 2024, 23% of the company's revenue was sourced from Volkswagen and Ford. Revenue is well diversified geographically, with approximately a third each generated in North America, Europe, and Asia.
51GF Score

Get the complete analysis for MIL:1BWA

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€55.22
Price
€32.35
GF Value