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BWA EV/EBITDA Analysis

7.3x

Higher than 32% of Consumer Cyclical sector peers

Updated 78h ago·SEC filings & market data

Key Takeaway

BorgWarner’s EV/EBITDA of 7.7x means its enterprise value—the total cost to buy the company including debt—is 7.7 times its earnings before interest, taxes, depreciation, and amortization, a common measure of operating cash earnings.

Sector Performance

32th percentile

BWA

7.3x

Sector Median

10.0x

Sector Avg

15.5x

Prior Period

7.7x(Aug 2026)

↑ Improving

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Deep Analysis

That is below the sector median of 10.0x, placing the stock at the 26th percentile among Consumer Cyclical peers, so it trades cheaper than most of its sector. The metric has been stable over the last 8 quarters, with three consecutive readings of 7.7x, a quarter-over-quarter change of -0.8%, and no year-over-year figure available. A low but stable valuation implies limited downside from a de-rating, while the lack of upward momentum suggests no immediate revaluation catalyst. This combination supports the overall NEUTRAL verdict: the valuation is not stretched, but it also does not signal a compelling bargain or growth-adjusted opportunity.

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 7.3x compares to a Consumer Cyclical sector median of 10.0x, placing it in the 32th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: SKX (9.9x), AEO (10.2x), APTV (10.3x), PHM (9.0x), CZR (9.0x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.