Allison Transmission Holdings Inc (ALSN) is fairly valued and BorgWarner Inc (BWA) is slightly undervalued.
Against our estimates of intrinsic value, BWA trades at the wider discount: a margin of safety of +7%, against +2% for ALSN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $118.03; the price of $115.38 is 2% below that value, and 78% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $65.64; the price of $61.11 is 7% below that value, and 75% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | ALSN | BWA |
|---|---|---|
| Verdict | Fairly valued | Slightly undervalued |
| Price | $115.38 | $61.11 |
| Intrinsic value | $118.03 | $65.64 |
| Margin of safety | +2% | +7% |
| Leak Score | 30/100 (3/12) | 14/100 (3/12) |
| Market cap | $9.5B | $12.4B |
| Revenue growth, 5 years | 7.7% | 7.1% |
| Operating margin | 21.4% | 10.2% |
| Net margin | 12.0% | 2.9% |
| Return on equity | 28.4% | 7.2% |
| Debt to equity | 2.14 | 0.72 |
| P/E | 18.3x | 31.0x |
| Forward P/E | 10.5x | 10.3x |
| P/B | 4.8x | 2.2x |
| Dividend yield | 1.0% | 1.1% |