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BWA (BorgWarner) PS Ratio : 0.55 (As of Dec. 13, 2024)


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What is BorgWarner PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, BorgWarner's share price is $33.925. BorgWarner's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $62.03. Hence, BorgWarner's PS Ratio for today is 0.55.

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

BWA' s PS Ratio Range Over the Past 10 Years
Min: 0.37   Med: 0.75   Max: 1.51
Current: 0.56

During the past 13 years, BorgWarner's highest PS Ratio was 1.51. The lowest was 0.37. And the median was 0.75.

BWA's PS Ratio is ranked better than
60.49% of 1296 companies
in the Vehicles & Parts industry
Industry Median: 0.83 vs BWA: 0.56

BorgWarner's Revenue per Sharefor the three months ended in Sep. 2024 was $15.36. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $62.03.

During the past 12 months, the average Revenue per Share Growth Rate of BorgWarner was 4.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 8.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 3.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 5.60% per year.

During the past 13 years, BorgWarner's highest 3-Year average Revenue per Share Growth Rate was 20.40% per year. The lowest was -5.00% per year. And the median was 9.40% per year.

Back to Basics: PS Ratio


BorgWarner PS Ratio Historical Data

The historical data trend for BorgWarner's PS 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.

* Premium members only.

BorgWarner PS Ratio Chart

BorgWarner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.78 0.72 0.80 0.66 0.59

BorgWarner Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PS 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 0.68 0.59 0.56 0.52 0.59

Competitive Comparison of BorgWarner's PS Ratio

For the Auto Parts subindustry, BorgWarner's PS Ratio, along with its competitors' market caps and PS 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's PS Ratio Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where BorgWarner's PS Ratio falls into.



BorgWarner PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

BorgWarner's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=33.925/62.032
=0.55

BorgWarner's Share Price of today is $33.925.
BorgWarner's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $62.03.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


BorgWarner  (NYSE:BWA) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


BorgWarner PS Ratio Related Terms

Thank you for viewing the detailed overview of BorgWarner's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


BorgWarner Business Description

Traded in Other Exchanges
Address
3850 Hamlin Road, Auburn Hills, MI, USA, 48326
BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 14% and 11% of 2023 revenue, respectively. Geographically, Europe accounted for 36% of 2023 revenue, while Asia and North America were 34% and 29% apiece.
Executives
Stefan Demmerle officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Isabelle Mckenzie officer: Vice President 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Frederic Lissalde officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Volker Weng officer: Vice President 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Paul Arthur Farrell officer: VP & Chief Strategy Officer 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Tania Wingfield officer: EVP & CHRO 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Tonit M Calaway officer: EVP and Chief HR Officer HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Joseph F. Fadool officer: Vice President BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Alexis P Michas director 940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Daniel Etue officer: VP & Controller 3850 W. HAMLIN RD, AUBURN HILLS MI 48326
Hau N Thai-tang director ONE AMERICAN ROAD, DEARBORN MI 48126
Sailaja Shankar director 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Felecia J. Pryor officer: EVP & CHRO 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Sara A. Greenstein director 600 GRANT STREET, PITTSBURGH PA 15219
David S Haffner director