BorgWarner Inc (BWA) is slightly undervalued and Magna International Inc (MGA) is fairly valued.
Against our estimates of intrinsic value, BWA trades at the wider discount: a margin of safety of +7%, against -2% for MGA.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $62.40; the price of $63.79 is 2% above that value, and 73% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | BWA | MGA |
|---|---|---|
| Verdict | Slightly undervalued | Fairly valued |
| Price | $61.11 | $63.79 |
| Intrinsic value | $65.64 | $62.40 |
| Margin of safety | +7% | -2% |
| Leak Score | 14/100 (3/12) | 14/100 (3/12) |
| Market cap | $12.4B | $16.9B |
| Revenue growth, 5 years | 7.1% | 5.2% |
| Operating margin | 10.2% | 5.5% |
| Net margin | 2.9% | 1.8% |
| Return on equity | 7.2% | 6.3% |
| Debt to equity | 0.72 | 0.55 |
| P/E | 31.0x | 23.2x |
| Forward P/E | 10.3x | 8.1x |
| P/B | 2.2x | 1.4x |
| Dividend yield | 1.1% | 3.1% |