BorgWarner (MIL:1BWA) Debt-to-EBITDA : (As of Jun. 2026)

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MIL:1BWA BorgWarner Inc MIL:1BWA
51 GF Score
Price €55.30
GF Value €34.61
Valuation Significantly Overvalued
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What is BorgWarner Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

BorgWarner's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €35 Mil. BorgWarner's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €3,521 Mil. BorgWarner's annualized EBITDA for the quarter that ended in Jun. 2026 was €1,899 Mil. BorgWarner's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 1.87.

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:

MIL:1BWA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.16   Med: 2.44   Max: 3.88
Current: 2.74

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.

MIL:1BWA's Debt-to-EBITDA is ranked worse than
57.26% of 1102 companies
in the Vehicles & Parts industry
Industry Median: 2.275 vs MIL:1BWA: 2.74

BorgWarner  (MIL:1BWA) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

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.

BorgWarner Debt-to-EBITDA Chart

BorgWarner Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
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BorgWarner Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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MIL:1BWA vs AUR, ALSN, APTV: 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.


MIL:1BWA
51GF Score
BorgWarner Inc MIL:1BWA
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

BorgWarner Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

BorgWarner's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(34.909957852612 + 3419.4729447827) / 1210.3727520857
=2.85

BorgWarner's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(34.986442753433 + 3520.5108020642) / 1899.0123264472
=1.87

* 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 (Jun. 2026) EBITDA data.

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

Based on GuruFocus' analysis, BorgWarner stock appears to be overvalued. The current stock price of €55.30 is trading 59.8% above its estimated GF Value™ of €34.61. GuruFocus considers BorgWarner to be Significantly Overvalued.

Key valuation signals for MIL:1BWA:

  • Debt-to-EBITDA:
  • GF Value™: €34.61 vs. price of €55.30 (59.8% above fair value)
  • GF Score™: 51/100

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

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€55.30
Price
€34.61
GF Value