BorgWarner Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $1,213M TTM base FCF (operating cash flow $1,725M less capex $512M); 3% annual FCF growth years 1-5; 2.5% years 6-10; 10% discount rate reflecting auto-sector and internal-combustion-to-electrification transition risk; 2% terminal growth; $1,617M net debt ($4,065M total debt less $2,448M cash); 203.67M shares outstanding.

Reasoning: BorgWarner is a large, cash-generative auto-parts supplier; a conventional unlevered FCF DCF is appropriate, but growth is kept modest and the discount rate set above a typical large-cap level to reflect the structural uncertainty automotive suppliers face as the industry shifts from internal-combustion to electrified powertrains.