Penske Automotive Group, Inc. (PAG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-31.1%

$146.70

vs $212.99 price

Levered DCF

$146.38

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.23

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.2×	10.52×	10.36×	6.2×	7.2×	8.81×	9.51×	7.29×
P/B	1.88×	1.96×	2.31×	2.06×	2.1×	1.45×	1.48×	1.32×
P/S	0.33×	0.32×	0.35×	0.31×	0.33×	0.23×	0.18×	0.15×
EV / EBITDA	11.33×	10.64×	10.05×	7.3×	8.14×	12.16×	14.05×	10.41×
Gross margin	16.4%	16.4%	16.6%	17.4%	17.4%	15.6%	14.9%	15.0%
Operating margin	4.0%	4.3%	4.7%	5.3%	5.3%	3.4%	2.8%	2.9%
Net margin	2.9%	3.0%	3.6%	5.0%	4.6%	2.7%	1.9%	2.1%
Current ratio	0.99×	0.91×	1×	0.99×	0.95×	0.94×	0.98×	1.01×
Debt / equity	1.59×	1.59×	1.64×	1.68×	1.57×	2.18×	3.1×	2.3×
Interest coverage	4.88×	4.88×	6.36×	12.12×	14.31×	4.48×	3.13×	3.4×
Dividend yield	3.3%	2.7%	1.7%	1.8%	1.7%	1.4%	3.2%	3.5%
Payout ratio	36.8%	28.3%	17.1%	11.2%	12.0%	12.5%	30.0%	25.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.8%	18.6%	23.5%	33.3%	29.2%	16.5%	15.6%	18.1%
Return on invested capital	5.7%	6.9%	7.8%	8.9%	8.5%	4.6%	3.8%	5.3%
Return on assets	5.1%	5.8%	7.1%	9.8%	8.8%	4.1%	3.1%	4.3%
Free cash flow yield	6.2%	8.0%	6.6%	13.8%	12.2%	21.2%	6.6%	9.0%
Earnings yield	8.9%	9.5%	10.2%	16.1%	13.9%	11.4%	10.5%	13.7%
Enterprise value	$19.2B	$18.4B	$18.6B	$15.4B	$14.8B	$11.9B	$12.8B	$9.4B
Net debt / EBITDA	5.16×	4.74×	4.14×	3.25×	3.45×	7.28×	9.5×	6.61×
Cash conversion cycle (days)	66	63	62	54	51	73	82	80