Discounted Cash Flow

Borgwarner Inc.

BWA · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $9.1b $118.5m $535.1m 1.3% $0.55
2017 $9.8b (8.0%) $439.9m (271.2%) $620.3m (15.9%) 4.5% (243.6%) $2.09 (280.0%)
2018 $10.5b (7.5%) $930.7m (111.6%) $579.9m (-6.5%) 8.8% (96.9%) $4.47 (113.9%)
2019 $10.2b (-3.4%) $746.0m (-19.8%) $527.0m (-9.1%) 7.3% (-17.0%) $3.63 (-18.8%)
2020 $10.2b (-0.0%) $500.0m (-33.0%) $743.0m (41.0%) 4.9% (-33.0%) $2.35 (-35.3%)
2021 $14.8b (46.0%) $537.0m (7.4%) $640.0m (-13.9%) 3.6% (-26.4%) $2.25 (-4.3%)
2022 $15.8b (6.5%) $944.0m (75.8%) $707.0m (10.5%) 6.0% (65.1%) $4.01 (78.2%)
2023 $14.2b (-10.1%) $625.0m (-33.8%) $565.0m (-20.1%) 4.4% (-26.3%) $2.68 (-33.2%)
2024 $14.1b (-0.8%) $338.0m (-45.9%) $729.0m (29.0%) 2.4% (-45.5%) $1.51 (-43.7%)
2025 $14.3b (1.6%) $277.0m (-18.0%) $1.2b (65.6%) 1.9% (-19.4%) $1.29 (-14.6%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model