DCF Tool

BWA

BorgWarner Inc – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 96 locations in 24 countries, the Company employs approximately 50,000 worldwide.
Analysis Results
Intrinsic Value $216.95
Latest Price $31.40
Relative Value 86% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 14.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.8%, 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)
2022 1.63 1.53
2023 1.87 1.64
2024 2.15 1.77
2025 2.47 1.91
2026 2.83 2.05
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 62.4 billion. This corresponds to a present value of 42.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.9 billion. Adding in the terminal value gives a total present value of 51.4 billion.

There are presently 237.0 million outstanding shares, so the intrinsic value per share is 216.95.

Financial Statements

The following data was to determine the past cash flows.

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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