BorgWarner Inc (BWA) is slightly undervalued and Modine Manufacturing Co (MOD) is overvalued.
Against our estimates of intrinsic value, BWA trades at the wider discount: a margin of safety of +7%, against -204% for MOD.
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 12.1% (average of 3 methods) values the shares at $64.36; the price of $195.96 is 204% above that value, and 67% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | BWA | MOD |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $61.11 | $195.96 |
| Intrinsic value | $65.64 | $64.36 |
| Margin of safety | +7% | -204% |
| Leak Score | 14/100 (3/12) | 27/100 (3/12) |
| Market cap | $12.4B | $10.4B |
| Revenue growth, 5 years | 7.1% | 12.0% |
| Operating margin | 10.2% | 10.9% |
| Net margin | 2.9% | 4.3% |
| Return on equity | 7.2% | 13.0% |
| Debt to equity | 0.72 | 0.56 |
| P/E | 31.0x | 73.8x |
| Forward P/E | 10.3x | 17.9x |
| P/B | 2.2x | 8.7x |
| Dividend yield | 1.1% | — |