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BorgWarner Inc – Other Motor Vehicle Parts Manufacturing
driven by our vision of a cleaner, more energy-efficient world, borgwarner is a global product leader in innovative powertrain solutions engineered to improve fuel economy, emissions and performance for engines, transmissions and driveline systems around the world. we are proud of the environmentally friendly technologies we make and how we make them. we actively support the communities where we live and work. and we are always working to enhance the potential of our employees and our company.
Analysis Results
Intrinsic Value $245.95
Latest Price $33.95
Relative Value 86% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.37 1.33
2024 1.51 1.42
2025 1.66 1.51
2026 1.83 1.62
2027 2.01 1.73
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 60.4 billion. This corresponds to a present value of 50.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.61 billion. Adding in the terminal value gives a total present value of 57.8 billion.

There are presently 235.0 million outstanding shares, so the intrinsic value per share is 245.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,617,000,000
Current Cash 1,338,000,000
Current Liabilities 4,236,000,000
Current Debt 62,000,000
Non-Cash Working Capital (NCWC) 1,105,000,000
Change in NCWC 23,000,000
EBIT 1,529,000,000
Tax Provision 292,000,000
Depreciation and Amortization 721,000,000
Capital Expenditure -723,000,000
Unlevered Free Cash Flow 1,211,253,414
Current Assets 6,597,000,000
Current Cash 1,841,000,000
Current Liabilities 3,740,000,000
Current Debt 66,000,000
Non-Cash Working Capital (NCWC) 1,082,000,000
Change in NCWC 326,000,000
EBIT 1,443,000,000
Tax Provision 150,000,000
Depreciation and Amortization 772,000,000
Capital Expenditure -668,000,000
Unlevered Free Cash Flow 1,598,665,399
Current Assets 6,167,000,000
Current Cash 1,650,000,000
Current Liabilities 3,810,000,000
Current Debt 49,000,000
Non-Cash Working Capital (NCWC) 756,000,000
Change in NCWC -205,000,000
EBIT 977,000,000
Tax Provision 397,000,000
Depreciation and Amortization 568,000,000
Capital Expenditure -461,000,000
Unlevered Free Cash Flow 476,646,265
Current Assets 3,836,000,000
Current Cash 832,000,000
Current Liabilities 2,329,000,000
Current Debt 286,000,000
Non-Cash Working Capital (NCWC) 961,000,000
Change in NCWC 122,100,000
EBIT 1,260,000,000
Tax Provision 468,000,000
Depreciation and Amortization 439,000,000
Capital Expenditure -481,000,000
Unlevered Free Cash Flow 873,949,802
Current Assets 3,804,600,000
Current Cash 739,400,000
Current Liabilities 2,398,900,000
Current Debt 172,600,000
Non-Cash Working Capital (NCWC) 838,900,000
Change in NCWC 181,600,000
EBIT 1,332,600,000
Tax Provision 211,300,000
Depreciation and Amortization 431,300,000
Capital Expenditure -546,600,000
Unlevered Free Cash Flow 1,163,446,885
Current Assets 3,543,200,000
Current Cash 545,300,000
Current Liabilities 2,425,200,000
Current Debt 84,600,000
Non-Cash Working Capital (NCWC) 657,300,000
Change in NCWC 105,300,000
EBIT 1,272,800,000
Tax Provision 580,300,000
Depreciation and Amortization 407,800,000
Capital Expenditure -560,000,000
Unlevered Free Cash Flow 531,460,511
Current Assets 2,911,600,000
Current Cash 443,700,000
Current Liabilities 2,091,800,000
Current Debt 175,900,000
Non-Cash Working Capital (NCWC) 552,000,000
Change in NCWC -89,800,000
EBIT 1,158,500,000
Tax Provision 30,300,000
Depreciation and Amortization 391,400,000
Capital Expenditure -500,600,000
Unlevered Free Cash Flow 775,234,645
Current Assets 3,135,300,000
Current Cash 577,700,000
Current Liabilities 2,357,300,000
Current Debt 441,500,000
Non-Cash Working Capital (NCWC) 641,800,000
Change in NCWC 13,300,000
EBIT 1,081,100,000
Tax Provision 280,400,000
Depreciation and Amortization 320,200,000
Capital Expenditure -577,300,000
Unlevered Free Cash Flow 510,217,091
Current Assets 2,970,800,000
Current Cash 797,800,000
Current Liabilities 2,168,200,000
Current Debt 623,700,000
Non-Cash Working Capital (NCWC) 628,500,000
Change in NCWC 191,800,000
EBIT 1,104,800,000
Tax Provision 292,600,000
Depreciation and Amortization 303,200,000
Capital Expenditure -563,000,000
Unlevered Free Cash Flow 706,971,941
Current Assets 2,798,500,000
Current Cash 939,500,000
Current Liabilities 1,623,900,000
Current Debt 201,600,000
Non-Cash Working Capital (NCWC) 436,700,000
Change in NCWC 39,300,000
EBIT 961,300,000
Tax Provision 218,300,000
Depreciation and Amortization 272,700,000
Capital Expenditure -417,800,000
Unlevered Free Cash Flow 614,096,813
Current Assets 2,472,800,000
Current Cash 715,700,000
Current Liabilities 1,603,100,000
Current Debt 243,400,000
Non-Cash Working Capital (NCWC) 397,400,000
Change in NCWC -53,200,000
EBIT 880,400,000
Tax Provision 238,600,000
Depreciation and Amortization 260,200,000
Capital Expenditure -407,400,000
Unlevered Free Cash Flow 403,963,942

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