BWANEUTRAL

BWA P/E Ratio Analysis

27.0x

Higher than 50% of Consumer Cyclical sector peers

Updated 154h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 27.0x means investors pay $27 for every $1 of the company's annual earnings per share.

Sector Performance

50th percentile

BWA

27.0x

Sector Median

27.0x

Sector Avg

36.8x

Prior Period

32.9x(Jul 2026)

↑ Improving

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Deep Analysis

A P/E ratio of 27.0x means investors pay $27 for every $1 of the company's annual earnings per share.

This matches the sector median of 27.0x exactly, placing BorgWarner at the 50th percentile among Consumer Cyclical peers—right in the middle of the pack. The year-over-year change is N/A, so no full-year comparison is available, but the quarter-over-quarter change shows a decline of -17.9% from 32.9x to 27.0x. The combination of a median-level valuation with a recently falling multiple suggests reduced earnings pessimism or a cheaper entry point, though the lack of longer trend data limits confidence. This metric supports the overall NEUTRAL verdict, as the valuation is neither stretched nor undervalued relative to its sector.

Frequently Asked Questions

What does the P/E Ratio tell investors about BWA?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does BWA's P/E Ratio compare to its sector?

BWA's P/E Ratio of 27.0x compares to a Consumer Cyclical sector median of 27.0x, placing it in the 50th percentile.

Who are BWA's closest peers by P/E Ratio?

The closest Consumer Cyclical peers by P/E Ratio include: BKNG (27.6x), AMZN (29.0x), AMCR (29.1x), KMX (30.5x), ABNB (31.1x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.