Autozone Inc (AZO) 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 +3% for AZO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $2980.07; the price of $2894.73 is 3% below that value, and 81% of that value comes from beyond year five.
Leak Score 53/100 on 8 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 | AZO | BWA |
|---|---|---|
| Verdict | Fairly valued | Slightly undervalued |
| Price | $2894.73 | $61.11 |
| Intrinsic value | $2980.07 | $65.64 |
| Margin of safety | +3% | +7% |
| Leak Score | 53/100 (8/12) | 14/100 (3/12) |
| Market cap | $47.3B | $12.4B |
| Revenue growth, 5 years | 6.8% | 7.1% |
| Operating margin | 18.3% | 10.2% |
| Net margin | 12.7% | 2.9% |
| Return on equity | — | 7.2% |
| Debt to equity | — | 0.72 |
| P/E | 18.9x | 31.0x |
| Forward P/E | 14.7x | 10.3x |
| P/B | — | 2.2x |
| Dividend yield | — | 1.1% |