PACCAR Inc (PCAR) 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

-58.1%

$43.47

vs $103.72 price

Levered DCF

$59.22

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.49

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	24.23×	13.13×	11.12×	11.45×	16.44×	23.01×	11.49×	9.13×
P/B	2.99×	3.12×	3.22×	2.62×	2.65×	2.87×	2.83×	2.33×
P/S	2.03×	1.62×	1.46×	1.2×	1.31×	1.6×	1.07×	0.85×
EV / EBITDA	15.95×	10×	8.78×	8.94×	11.51×	14.38×	8.66×	7.32×
Gross margin	16.2%	19.9%	21.7%	18.1%	18.2%	18.5%	18.8%	18.7%
Operating margin	10.4%	14.5%	16.9%	12.8%	9.8%	0.0%	11.6%	11.4%
Net margin	8.4%	12.4%	13.1%	10.4%	7.9%	6.9%	9.3%	9.3%
Current ratio	3.08×	2.64×	2.5×	2.6×	2.62×	2.69×	2.41×	2.42×
Debt / equity	0.81×	0.91×	0.91×	0.89×	0.93×	1.09×	1.22×	1.26×
Interest coverage	8.55×	157.31×	1,165.96×	0×	562.98×	0×	0×	0×
Dividend yield	3.9%	4.2%	3.0%	2.9%	2.3%	4.1%	4.1%	4.0%
Payout ratio	95.4%	55.0%	33.0%	33.4%	38.0%	95.3%	47.7%	36.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.3%	23.8%	29.0%	22.9%	16.1%	12.5%	24.6%	25.5%
Return on invested capital	6.2%	10.5%	14.5%	10.7%	7.4%	0.0%	9.7%	9.9%
Return on assets	5.4%	9.6%	11.3%	9.1%	6.3%	4.6%	8.4%	8.6%
Free cash flow yield	5.3%	5.3%	5.7%	4.7%	1.8%	4.5%	3.2%	5.2%
Earnings yield	4.1%	7.6%	9.0%	8.7%	6.1%	4.3%	8.7%	10.9%
Enterprise value	$66.9B	$63.5B	$58.4B	$41.5B	$38B	$37.7B	$35.1B	$27.4B
Net debt / EBITDA	2.22×	1.39×	1.08×	1.51×	2.22×	2.97×	1.88×	1.97×
Cash conversion cycle (days)	276	226	204	194	209	241	8	8