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DCF valuation

What is Borgwarner Inc worth?

With the base-case assumptions below, a discounted cash flow model on Borgwarner Inc's reported free cash flow gives $106.41 per share. The share price was $50.51 on November 10, 2026, 53% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.18B
Average free cash flow, last 5 years
$838.8M
Cash
$1.58B
balance sheet of September 30, 2026
Debt
$3B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
216,400,000
Revenue growth per year, last 5 years
7.1%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear2.0%2.0%2.0%10.0%$62.91+25%
Base7.0%5.0%2.5%9.0%$106.41+111%
Bull12.0%7.5%3.0%8.0%$187.62+271%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$137.93$147.57$159.36$174.10$193.04
8.0%$114.39$120.65$128.04$136.91$147.75
9.0%$97.20$101.48$106.41$112.17$118.97
10.0%$84.11$87.15$90.60$94.54$99.08
11.0%$73.83$76.06$78.55$81.35$84.53

Where the presets come from

Base: years 1 to 5 grow at Borgwarner Inc's revenue growth rate over the last 5 fiscal years (7.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Borgwarner Inc company page