Based on the provided information from the valuation case study on auto supplier multiples, it appears that HMHC (Houghton Mifflin Harcourt) is trading at a significant discount compared to other companies like Borg Warner (BWA) and Tenneco (TEN).
The study mentions that Borg Warner is a manufacturer of auto parts that is capable of remaining FCF (Free Cash Flow) positive during cyclical swings and that its multiples have been trending downward due to the uncertain future of electric vehicles. On the other hand, HMHC is also capable of remaining FCF positive during cyclical swings, and there is reason to believe that the quality of the business is improving. However, despite these positive factors, HMHC still trades at a significant discount compared to Borg Warner.
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