Based on the provided data, I'll analyze whether PCAR is overvalued through multiple valuation metrics and recent performance.
Valuation Analysis
PCAR's current PE ratio of 13.16 in Q4 2024 is relatively reasonable compared to its historical range, showing moderate valuation. The EV/EBITDA of 6.20 indicates an attractive valuation from a cash flow perspective.
Financial Performance
Net income has shown a declining trend from $1.19B in Q1 2024 to $872M in Q4 2024, with net margin decreasing from 13.67% to 11.03%. However, this still represents healthy profitability levels.
Analyst Consensus
Recent analyst ratings show a balanced view - JP Morgan raised price target to $132 (24.5% upside), while others maintain more conservative targets around $113-115. The mean price target of $117.7 suggests a 9.3% upside potential.
Market Position
PCAR commands roughly 30% of Class 8 market share in North America and 17% of heavy-duty market share in Europe, demonstrating strong competitive positioning despite recent margin pressure.
Based on these factors, PCAR is not overvalued at current levels. The company maintains solid market position, healthy margins, and reasonable valuation multiples despite recent earnings pressure.