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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-01), BorgWarner's 1-Year Sharpe Ratio is 1.31.
BorgWarner (MEX:BWA) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
BorgWarner 1-Year Sharpe Ratio Related Terms
MEX:BWA vs MOD, APTV, AUR: 1-Year Sharpe Ratio Comparison
For the Auto Parts subindustry, BorgWarner's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where BorgWarner's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
BorgWarner (MEX:BWA) has a 1-Year Sharpe Ratio of 1.31 as of Aug. 01, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for BorgWarner and its competitors.
Is BorgWarner's 1-Year Sharpe Ratio too high?
BorgWarner's current 1-Year Sharpe Ratio is 1.31. Overall, BorgWarner has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BorgWarner's 1-Year Sharpe Ratio compare to MOD and APTV?
BorgWarner's 1-Year Sharpe Ratio of 1.31 can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Vehicles & Parts company?
A good 1-Year Sharpe Ratio depends on the Vehicles & Parts industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for BorgWarner and its competitors. BorgWarner's current 1-Year Sharpe Ratio is 1.31. 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 MXN686.31, compared to a current price of MXN1,117.66 — trading 62.9% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.31. BorgWarner's overall GF Score™ is 66/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For BorgWarner (MEX:BWA), the current 1-Year Sharpe Ratio is 1.31 as of Aug. 01, 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 62.9% above its estimated GF Value™ of MXN686.31.
GuruFocus considers BorgWarner to be Significantly Overvalued.
Key valuation signals for MEX:BWA:
1-Year Sharpe Ratio: 1.31
GF Value™: MXN686.31 vs. price of MXN1,117.66 (62.9% above fair value)
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.
66GF Score
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