BWA PEG Ratio Analysis
Higher than 60% of Consumer Cyclical sector peers
Updated 77h ago·SEC filings & market data
Key Takeaway
The PEG ratio measures a stock's price relative to its expected earnings growth, with 1.14x meaning investors pay $1.14 for each unit of projected growth.
Sector Performance
60th percentileBWA
1.14x
Sector Median
0.66x
Sector Avg
3.60x
Prior Period
0.61x(Jul 2026)
Deep Analysis
The PEG ratio measures a stock's price relative to its expected earnings growth, with 1.14x meaning investors pay $1.14 for each unit of projected growth.
This sits above the sector median of 0.66x and places BorgWarner at the 60th percentile among Consumer Cyclical peers, indicating a higher price-to-growth tradeoff than most competitors. The year-over-year change is N/A, and the 8-quarter trend is also N/A, but the quarter-over-quarter rise is +86.9%, moving from 0.61x to 1.14x. This steep increase signals a fast repricing or a sharp downward revision in growth expectations, which raises the risk of overpaying if growth slows further. The combination of an above-median level and a strong upward trend suggests limited margin of safety and a less attractive risk/reward profile versus peers. This metric contradicts the overall NEUTRAL verdict by pointing to a potential overvaluation, though the neutral stance remains defensible if growth estimates stabilize.
Frequently Asked Questions
What does the PEG Ratio tell investors about BWA?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
How does BWA's PEG Ratio compare to its sector?
BWA's PEG Ratio of 1.14x compares to a Consumer Cyclical sector median of 0.66x, placing it in the 60th percentile.
Who are BWA's closest peers by PEG Ratio?
The closest Consumer Cyclical peers by PEG Ratio include: SKX (0.66x), AMCR (0.70x), AMZN (0.38x), BBY (0.31x), RH (0.18x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.14x
Sector Median
0.66x
Sector Avg
3.60x
How BWA's PEG Ratio compares to sector peers.
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