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BorgWarnerMEX:BWA 65 Debt-to-EBITDA is 2.05 as of Mar. 2026, which is 16% below its 10-year median of 2.44. GuruFocus rates MEX:BWA with a GF Score™ of 65/100 and a GF Value™ of MXN708.15 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,092 Vehicles & Parts companies, BorgWarner ranks worse than 59.07% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for BorgWarner's Debt-to-EBITDA or its related term are showing as below:
MEX:BWA'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.16 Med: 2.44 Max: 3.88
Current: 2.86
During the past 13 years, the highest Debt-to-EBITDA Ratio of BorgWarner was 3.88. The lowest was 1.16. And the median was 2.44.
MEX:BWA's Debt-to-EBITDA is ranked worse than 59.07% of 1092
companies
in the Vehicles & Parts industry
Industry Median: 2.245
vs MEX:BWA: 2.86
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
BorgWarner Debt-to-EBITDA Related Terms
BorgWarner Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for BorgWarner's Debt-to-EBITDA 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.
MEX:BWA vs MOD, APTV, AUR: Debt-to-EBITDA Comparison
For the Auto Parts subindustry, BorgWarner's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where BorgWarner's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
BorgWarner (MEX:BWA) has a Debt-to-EBITDA of 2.05 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BorgWarner. This is 16% below median its historical median of 2.44. Over the past decade, BorgWarner's Debt-to-EBITDA has ranged from 1.16 to 3.88. According to the industry distribution chart, BorgWarner ranks #645 out of 1092 companies in the Vehicles & Parts industry, placing it in the top 59.1%.
Is BorgWarner's Debt-to-EBITDA too high?
BorgWarner's current Debt-to-EBITDA of 2.05 is 16% below median its 10-year median of 2.44. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 3.88. The Vehicles & Parts industry median Debt-to-EBITDA is 2.25. BorgWarner's value of 2.05 is 8.7% below this industry median. Based on the distribution chart, BorgWarner ranks #645 out of 1092 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, BorgWarner has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's Debt-to-EBITDA compare to MOD and APTV?
According to the Vehicles & Parts industry distribution chart, BorgWarner ranks #645 out of 1092 companies for Debt-to-EBITDA. This places BorgWarner in the lower half of its industry. The industry median Debt-to-EBITDA is 2.25. BorgWarner's value of 2.05 is 8.7% below this benchmark. Historically, BorgWarner's own Debt-to-EBITDA has ranged from 1.16 to 3.88 over the past decade. While the company's 10-year median is 2.44 vs. the industry median of 2.25, BorgWarner has consistently been below 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 Debt-to-EBITDA for a Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.25, based on 1,092 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BorgWarner's current Debt-to-EBITDA of 2.05 is 8.7% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on BorgWarner. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BorgWarner's current Debt-to-EBITDA is 2.05, which is 16% below median its own 10-year median of 2.44. 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 (MEX:BWA) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN708.15, compared to a current price of MXN1,117.66 — trading 57.8% above its estimated fair value. The current Debt-to-EBITDA is 2.05, which is 16% below median its 10-year median of 2.44 and 8.7% below the Vehicles & Parts industry median of 2.25. BorgWarner's overall GF Score™ is 65/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For BorgWarner (MEX:BWA), the current Debt-to-EBITDA is 2.05 as of Mar. 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 (MEX:BWA) Overvalued in 2026?
Based on GuruFocus' analysis, BorgWarner stock appears to be overvalued.
The current stock price of MXN1,117.66 is trading 57.8% above its estimated GF Value™ of MXN708.15.
GuruFocus considers BorgWarner to be Significantly Overvalued.
Key valuation signals for MEX:BWA:
Debt-to-EBITDA: 2.05 (16% below median its 10-year median of 2.44)
GF Value™: MXN708.15 vs. price of MXN1,117.66 (57.8% above fair value)
Industry Position: 8.7% below the Vehicles & Parts median (#645 of 1092)
No single metric tells the full story. See the MEX:BWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
65GF Score
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