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 11.97 is considered Fairly compared with the five-year average of 9.02. The fair price of Penske Automotive Group Inc (PAG) is between 124.16 to 179.10 according to relative valuation methord.
Relative Value
Fair Zone
124.16-179.10
Current Price：163.17
Fair
12.00
PE
1Y
3Y
5Y
Trailing
Forward
12.88
EV/EBITDA
Penske Automotive Group Inc. (PAG) has a current EV/EBITDA of 12.88. The 5-year average EV/EBITDA is 10.41. The thresholds are as follows: Strongly Undervalued below 5.62, Undervalued between 5.62 and 8.01, Fairly Valued between 12.81 and 8.01, Overvalued between 12.81 and 15.21, and Strongly Overvalued above 15.21. The current Forward EV/EBITDA of 12.88 falls within the Overvalued range.
14.91
EV/EBIT
Penske Automotive Group Inc. (PAG) has a current EV/EBIT of 14.91. The 5-year average EV/EBIT is 12.79. 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 16.90, and Strongly Overvalued above 16.90. The current Forward EV/EBIT of 14.91 falls within the Overvalued range.
0.35
PS
Penske Automotive Group Inc. (PAG) has a current PS of 0.35. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 0.27, Fairly Valued between 0.36 and 0.27, Overvalued between 0.36 and 0.41, and Strongly Overvalued above 0.41. The current Forward PS of 0.35 falls within the Historic Trend Line -Fairly Valued range.
9.69
P/OCF
Penske Automotive Group Inc. (PAG) has a current P/OCF of 9.69. The 5-year average P/OCF is 8.45. The thresholds are as follows: Strongly Undervalued below 3.77, Undervalued between 3.77 and 6.11, Fairly Valued between 10.80 and 6.11, Overvalued between 10.80 and 13.14, and Strongly Overvalued above 13.14. The current Forward P/OCF of 9.69 falls within the Historic Trend Line -Fairly Valued range.
12.66
P/FCF
Penske Automotive Group Inc. (PAG) has a current P/FCF of 12.66. The 5-year average P/FCF is 12.51. The thresholds are as follows: Strongly Undervalued below 2.56, Undervalued between 2.56 and 7.53, Fairly Valued between 17.48 and 7.53, Overvalued between 17.48 and 22.45, and Strongly Overvalued above 22.45. The current Forward P/FCF of 12.66 falls within the Historic Trend Line -Fairly Valued range.
Penske Automotive Group Inc (PAG) has a current Price-to-Book (P/B) ratio of 1.89. Compared to its 3-year average P/B ratio of 2.16 , the current P/B ratio is approximately -12.74% higher. Relative to its 5-year average P/B ratio of 2.07, the current P/B ratio is about -8.77% higher. Penske Automotive Group Inc (PAG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.67% , the current FCF yield is about -100.00% lower.
1.89
P/B
Median3y
2.16
Median5y
2.07
7.04
FCF Yield
Median3y
7.92
Median5y
10.67
Competitors Valuation Multiple
The average P/S ratio for PAG's competitors is , providing a benchmark for relative valuation. Penske Automotive Group Inc Corp (PAG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.38%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PAG increased by 8.14% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.10 to 11.52.
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.
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FAQ
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