P/E Ratio

The current P/E ratio of 32.9x means that for every $1 of BorgWarner’s annual earnings, investors are paying $32.90 for the stock—a measure of how expensive the stock is relative to its profitability.

That is above the sector median of 23.6x and places the company in the 74th percentile among its Consumer Cyclical peers, meaning about three-quarters of peers have a lower P/E. Over the most recent eight quarters the trend direction is decreasing, but the specific year-over-year change is not available, while the quarter-over-quarter change is a +4.0% increase (from 31.7x to 32.9x). The combination of a high P/E (above sector) with an overall decreasing trend suggests the stock may have been becoming cheaper over time, but the latest quarterly uptick could signal renewed valuation expansion, creating a mixed picture for risk. Given the above-Median valuation paired with a recent uptick, this metric neither strongly supports nor contradicts the NEUTRAL verdict—it aligns with a balanced view of modest overvaluation and an uncertain near-term direction.

Frequently Asked Questions

Closest Sector Peers