BWANEUTRAL

EV/EBITDA

7.8x

Higher than 30% of Consumer Cyclical sector peers

Updated 128h ago

Sector Performance

30th percentile

BWA

7.8x

Sector Median

10.3x

Sector Avg

15.7x

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Deep Analysis

Enterprise value divided by earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) is a valuation multiple that shows how many years of pre-tax, pre-debt cash flow it would take to buy the entire company.

At 7.8x, BorgWarner trades well below the sector median of 13.5x, placing it in the 24th percentile of Consumer Cyclical peers — meaning it is cheaper than about three-quarters of them. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter drop of 8.9% (year-over-year change is not available). A low but falling EV/EBITDA can signal that the market is pricing in declining earnings power, which creates both a potential value opportunity if the business stabilizes and a risk that the multiple could compress further. This combination of a depressed valuation and a downward trend supports the overall NEUTRAL verdict, as the low multiple alone might suggest a bargain, but the persistent decline tempers that view with caution.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BWA?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does BWA's EV/EBITDA compare to its sector?

BWA's EV/EBITDA of 7.8x compares to a Consumer Cyclical sector median of 10.3x, placing it in the 30th percentile.

Who are BWA's closest peers by EV/EBITDA?

The closest Consumer Cyclical peers by EV/EBITDA include: AEO (10.2x), APTV (10.3x), SKX (9.9x), CZR (8.9x), BALL (11.6x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.