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BorgWarner (LTS:0HOU) Cyclically Adjusted PB Ratio : 1.35 (As of Jun. 05, 2024)


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What is BorgWarner Cyclically Adjusted PB Ratio?

As of today (2024-06-05), BorgWarner's current share price is $35.01. BorgWarner's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was $25.86. BorgWarner's Cyclically Adjusted PB Ratio for today is 1.35.

The historical rank and industry rank for BorgWarner's Cyclically Adjusted PB Ratio or its related term are showing as below:

LTS:0HOU' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.08   Med: 2.33   Max: 5.36
Current: 1.39

During the past years, BorgWarner's highest Cyclically Adjusted PB Ratio was 5.36. The lowest was 1.08. And the median was 2.33.

LTS:0HOU's Cyclically Adjusted PB Ratio is ranked worse than
50.97% of 981 companies
in the Vehicles & Parts industry
Industry Median: 1.35 vs LTS:0HOU: 1.39

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

BorgWarner's adjusted book value per share data for the three months ended in Mar. 2024 was $25.637. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $25.86 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


BorgWarner Cyclically Adjusted PB Ratio Historical Data

The historical data trend for BorgWarner's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BorgWarner Cyclically Adjusted PB Ratio Chart

BorgWarner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.28 1.89 1.91 1.51 1.42

BorgWarner Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.78 1.73 1.60 1.42 1.35

Competitive Comparison of BorgWarner's Cyclically Adjusted PB Ratio

For the Auto Parts subindustry, BorgWarner's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BorgWarner's Cyclically Adjusted PB Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, BorgWarner's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where BorgWarner's Cyclically Adjusted PB Ratio falls into.



BorgWarner Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

BorgWarner's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=35.01/25.86
=1.35

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

BorgWarner's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, BorgWarner's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=25.637/131.7762*131.7762
=25.637

Current CPI (Mar. 2024) = 131.7762.

BorgWarner Quarterly Data

Book Value per Share CPI Adj_Book
201406 16.763 100.560 21.967
201409 16.407 100.428 21.528
201412 15.970 99.070 21.242
201503 15.486 99.621 20.484
201506 16.290 100.684 21.321
201509 16.583 100.392 21.767
201512 16.203 99.792 21.396
201603 16.971 100.470 22.259
201606 17.183 101.688 22.267
201609 17.419 101.861 22.535
201612 15.162 101.863 19.615
201703 16.037 102.862 20.545
201706 17.113 103.349 21.820
201709 18.145 104.136 22.961
201712 17.631 104.011 22.337
201803 18.613 105.290 23.295
201806 18.961 106.317 23.502
201809 19.524 106.507 24.156
201812 20.296 105.998 25.232
201903 20.621 107.251 25.337
201906 21.277 108.070 25.944
201909 21.584 108.329 26.256
201912 22.800 108.420 27.712
202003 22.854 108.902 27.654
202006 22.248 108.767 26.954
202009 19.460 109.815 23.352
202012 26.903 109.897 32.259
202103 26.638 111.754 31.410
202106 27.728 114.631 31.875
202109 27.718 115.734 31.560
202112 28.977 117.630 32.462
202203 29.427 121.301 31.968
202206 29.088 125.017 30.661
202209 28.934 125.227 30.447
202212 30.856 125.222 32.471
202303 31.749 127.348 32.853
202306 32.123 128.729 32.883
202309 24.539 129.860 24.901
202312 25.363 129.419 25.825
202403 25.637 131.776 25.637

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


BorgWarner  (LTS:0HOU) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


BorgWarner Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of BorgWarner's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


BorgWarner (LTS:0HOU) Business Description

Traded in Other Exchanges
Address
3850 Hamlin Road, Auburn Hills, MI, USA, 48326
BorgWarner is a Tier I auto-parts supplier with three operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, and cabin heaters. The drivetrain and battery systems group produces automatic transmission components, torque management products, battery heaters, battery charging, and battery modules. The e-propulsion segment makes e-motors, power electronics, and software and control modules. The company's largest customers are Ford and Volkswagen at 13% and 8% of 2022 revenue, respectively. Geographically, Europe accounted for 34% of 2022 revenue, while Asia and North America were 32% each.

BorgWarner (LTS:0HOU) Headlines

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