Invesaro

Stocks BWA DCF valuation

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 $95.11 per share. The share price was $61.32 on September 25, 2026, 36% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.18B
Average free cash flow, last 5 years
$838.8M
Cash
$0
balance sheet of June 30, 2026
Debt
$3.87B
balance sheet of June 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%$51.60-16%
Base7.0%5.0%2.5%9.0%$95.11+55%
Bull12.0%7.5%3.0%8.0%$176.31+188%

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%$126.62$136.27$148.06$162.79$181.74
8.0%$103.09$109.34$116.74$125.61$136.45
9.0%$85.90$90.17$95.11$100.87$107.67
10.0%$72.81$75.85$79.30$83.24$87.78
11.0%$62.52$64.75$67.24$70.05$73.22

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