PAG PE Ratio & Valuation,Is PAG Overvalued

PAG Relative Valuation

PAG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PAG is overvalued; if below, it's undervalued.

Historical Valuation

Penske Automotive Group Inc (PAG) is now in the Fair zone, suggesting that its current forward PE ratio of 12.28 is considered Fairly compared with the five-year average of 9.04. The fair price of Penske Automotive Group Inc (PAG) is between 125.61 to 180.79 according to relative valuation methord.

Relative Value

Fair Zone

125.61-180.79

Current Price：167.62

Fair

12.28

13.08

EV/EBITDA

Penske Automotive Group Inc. (PAG) has a current EV/EBITDA of 13.08. The 5-year average EV/EBITDA is 10.42. The thresholds are as follows: Strongly Undervalued below 5.61, Undervalued between 5.61 and 8.02, Fairly Valued between 12.83 and 8.02, Overvalued between 12.83 and 15.23, and Strongly Overvalued above 15.23. The current Forward EV/EBITDA of 13.08 falls within the Overvalued range.

15.11

EV/EBIT

Penske Automotive Group Inc. (PAG) has a current EV/EBIT of 15.11. The 5-year average EV/EBIT is 12.80. The thresholds are as follows: Strongly Undervalued below 8.68, Undervalued between 8.68 and 10.74, Fairly Valued between 14.85 and 10.74, Overvalued between 14.85 and 16.91, and Strongly Overvalued above 16.91. The current Forward EV/EBIT of 15.11 falls within the Overvalued range.

0.36

Penske Automotive Group Inc. (PAG) has a current PS of 0.36. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 0.28, Fairly Valued between 0.36 and 0.28, Overvalued between 0.36 and 0.41, and Strongly Overvalued above 0.41. The current Forward PS of 0.36 falls within the Historic Trend Line -Fairly Valued range.

9.95

P/OCF

Penske Automotive Group Inc. (PAG) has a current P/OCF of 9.95. The 5-year average P/OCF is 8.47. The thresholds are as follows: Strongly Undervalued below 3.80, Undervalued between 3.80 and 6.14, Fairly Valued between 10.81 and 6.14, Overvalued between 10.81 and 13.15, and Strongly Overvalued above 13.15. The current Forward P/OCF of 9.95 falls within the Historic Trend Line -Fairly Valued range.

13.00

P/FCF

Penske Automotive Group Inc. (PAG) has a current P/FCF of 13.00. The 5-year average P/FCF is 12.53. The thresholds are as follows: Strongly Undervalued below 2.60, Undervalued between 2.60 and 7.56, Fairly Valued between 17.49 and 7.56, Overvalued between 17.49 and 22.45, and Strongly Overvalued above 22.45. The current Forward P/FCF of 13.00 falls within the Historic Trend Line -Fairly Valued range.

Penske Automotive Group Inc (PAG) has a current Price-to-Book (P/B) ratio of 1.94. Compared to its 3-year average P/B ratio of 2.16 , the current P/B ratio is approximately -10.22% higher. Relative to its 5-year average P/B ratio of 2.07, the current P/B ratio is about -6.36% higher. Penske Automotive Group Inc (PAG) has a Forward Free Cash Flow (FCF) yield of approximately 6.86%. Compared to its 3-year average FCF yield of 7.88%, the current FCF yield is approximately -13.02% lower. Relative to its 5-year average FCF yield of 10.64% , the current FCF yield is about -35.53% lower.

1.94

P/B

Median3y

2.16

Median5y

2.07

6.86

FCF Yield

Median3y

7.88

Median5y

10.64

Competitors Valuation Multiple

The average P/S ratio for PAG's competitors is 0.46, providing a benchmark for relative valuation. Penske Automotive Group Inc Corp (PAG) exhibits a P/S ratio of 0.36, which is -21.91% above the industry average. Given its robust revenue growth of 1.38%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PAG increased by 10.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.11 to 11.81.

The secondary factor is the Revenue Growth, contributed 1.38%to the performance.

Overall, the performance of PAG in the past 1 year is driven by P/E Change. Which is more unsustainable.

1.38%

7.59B → 7.70B

Revenue Growth

-7.36%

2.99 → 2.77

Margin Expansion

16.76%

10.11 → 11.81

P/E Change

10.78%

151.30 → 167.62

Mkt Cap Growth

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Frequently Asked Questions

Is Penske Automotive Group Inc (PAG) currently overvalued or undervalued?

What is Penske Automotive Group Inc (PAG) fair value?

PAG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Penske Automotive Group Inc (PAG) is between 125.61 to 180.79 according to relative valuation methord.

How does PAG's valuation metrics compare to the industry average?

What is the current P/B ratio for Penske Automotive Group Inc (PAG) as of Dec 15 2025?

As of Dec 15 2025, Penske Automotive Group Inc (PAG) has a P/B ratio of 1.94. This indicates that the market values PAG at 1.94 times its book value.

What is the current FCF Yield for Penske Automotive Group Inc (PAG) as of Dec 15 2025?

As of Dec 15 2025, Penske Automotive Group Inc (PAG) has a FCF Yield of 6.86%. This means that for every dollar of Penske Automotive Group Inc’s market capitalization, the company generates 6.86 cents in free cash flow.

What is the current Forward P/E ratio for Penske Automotive Group Inc (PAG) as of Dec 15 2025?

As of Dec 15 2025, Penske Automotive Group Inc (PAG) has a Forward P/E ratio of 12.28. This means the market is willing to pay $12.28 for every dollar of Penske Automotive Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Penske Automotive Group Inc (PAG) as of Dec 15 2025?

As of Dec 15 2025, Penske Automotive Group Inc (PAG) has a Forward P/S ratio of 0.36. This means the market is valuing PAG at $0.36 for every dollar of expected revenue over the next 12 months.

PAG Valuation