PCAR PE Ratio & Valuation,Is PCAR Overvalued

PCAR Relative Valuation

PCAR'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, PCAR is overvalued; if below, it's undervalued.

Historical Valuation

Paccar Inc (PCAR) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.28 is considered Overvalued compared with the five-year average of 13.36. The fair price of Paccar Inc (PCAR) is between 59.58 to 83.13 according to relative valuation methord. Compared to the current price of 111.56 USD , Paccar Inc is Overvalued By 34.2%.

Relative Value

Fair Zone

59.58-83.13

Current Price：111.56

34.2%

Overvalued

22.28

25.75

EV/EBITDA

Paccar Inc. (PCAR) has a current EV/EBITDA of 25.75. The 5-year average EV/EBITDA is 13.15. The thresholds are as follows: Strongly Undervalued below 6.39, Undervalued between 6.39 and 9.77, Fairly Valued between 16.53 and 9.77, Overvalued between 16.53 and 19.91, and Strongly Overvalued above 19.91. The current Forward EV/EBITDA of 25.75 falls within the Strongly Overvalued range.

28.42

EV/EBIT

Paccar Inc. (PCAR) has a current EV/EBIT of 28.42. The 5-year average EV/EBIT is 14.59. The thresholds are as follows: Strongly Undervalued below 6.72, Undervalued between 6.72 and 10.66, Fairly Valued between 18.53 and 10.66, Overvalued between 18.53 and 22.47, and Strongly Overvalued above 22.47. The current Forward EV/EBIT of 28.42 falls within the Strongly Overvalued range.

2.34

Paccar Inc. (PCAR) has a current PS of 2.34. The 5-year average PS is 1.50. The thresholds are as follows: Strongly Undervalued below 0.90, Undervalued between 0.90 and 1.20, Fairly Valued between 1.80 and 1.20, Overvalued between 1.80 and 2.10, and Strongly Overvalued above 2.10. The current Forward PS of 2.34 falls within the Strongly Overvalued range.

15.00

P/OCF

Paccar Inc. (PCAR) has a current P/OCF of 15.00. The 5-year average P/OCF is 10.56. The thresholds are as follows: Strongly Undervalued below 7.37, Undervalued between 7.37 and 8.96, Fairly Valued between 12.16 and 8.96, Overvalued between 12.16 and 13.76, and Strongly Overvalued above 13.76. The current Forward P/OCF of 15.00 falls within the Strongly Overvalued range.

20.37

P/FCF

Paccar Inc. (PCAR) has a current P/FCF of 20.37. The 5-year average P/FCF is 15.18. The thresholds are as follows: Strongly Undervalued below 5.82, Undervalued between 5.82 and 10.50, Fairly Valued between 19.86 and 10.50, Overvalued between 19.86 and 24.54, and Strongly Overvalued above 24.54. The current Forward P/FCF of 20.37 falls within the Overvalued range.

Paccar Inc (PCAR) has a current Price-to-Book (P/B) ratio of 3.03. Compared to its 3-year average P/B ratio of 2.98 , the current P/B ratio is approximately 1.47% higher. Relative to its 5-year average P/B ratio of 2.87, the current P/B ratio is about 5.52% higher. Paccar Inc (PCAR) has a Forward Free Cash Flow (FCF) yield of approximately 5.45%. Compared to its 3-year average FCF yield of 5.41%, the current FCF yield is approximately 0.72% lower. Relative to its 5-year average FCF yield of 4.38% , the current FCF yield is about 24.57% lower.

3.03

P/B

Median3y

2.98

Median5y

2.87

5.45

FCF Yield

Median3y

5.41

Median5y

4.38

Competitors Valuation Multiple

The average P/S ratio for PCAR's competitors is 1.54, providing a benchmark for relative valuation. Paccar Inc Corp (PCAR) exhibits a P/S ratio of 2.34, which is 51.78% above the industry average. Given its robust revenue growth of -19.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PCAR increased by 7.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.45 to 21.88.

The secondary factor is the Revenue Growth, contributed -19.03%to the performance.

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

-19.03%

8.24B → 6.67B

Revenue Growth

-25.08%

11.80 → 8.84

Margin Expansion

51.36%

14.45 → 21.88

P/E Change

7.25%

104.02 → 111.56

Mkt Cap Growth

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Frequently Asked Questions

Is Paccar Inc (PCAR) currently overvalued or undervalued?

What is Paccar Inc (PCAR) fair value?

PCAR'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 Paccar Inc (PCAR) is between 59.58 to 83.13 according to relative valuation methord.

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

What is the current P/B ratio for Paccar Inc (PCAR) as of Dec 15 2025?

As of Dec 15 2025, Paccar Inc (PCAR) has a P/B ratio of 3.03. This indicates that the market values PCAR at 3.03 times its book value.

What is the current FCF Yield for Paccar Inc (PCAR) as of Dec 15 2025?

As of Dec 15 2025, Paccar Inc (PCAR) has a FCF Yield of 5.45%. This means that for every dollar of Paccar Inc’s market capitalization, the company generates 5.45 cents in free cash flow.

What is the current Forward P/E ratio for Paccar Inc (PCAR) as of Dec 15 2025?

As of Dec 15 2025, Paccar Inc (PCAR) has a Forward P/E ratio of 22.28. This means the market is willing to pay $22.28 for every dollar of Paccar Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Paccar Inc (PCAR) as of Dec 15 2025?

As of Dec 15 2025, Paccar Inc (PCAR) has a Forward P/S ratio of 2.34. This means the market is valuing PCAR at $2.34 for every dollar of expected revenue over the next 12 months.

PCAR Valuation