PACCAR Inc

NasdaqGS:PCAR Stock Report

Market Cap: US$58.9b

PACCAR Valuation

Is PCAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PCAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PCAR ($111.88) is trading below our estimate of fair value ($130.85)

Significantly Below Fair Value: PCAR is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PCAR?

Key metric: As PCAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PCAR. This is calculated by dividing PCAR's market cap by their current earnings.
What is PCAR's PE Ratio?
PE Ratio12.5x
EarningsUS$4.71b
Market CapUS$58.86b

Price to Earnings Ratio vs Peers

How does PCAR's PE Ratio compare to its peers?

The above table shows the PE ratio for PCAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
CMI Cummins
23.8x7.6%US$49.6b
WAB Westinghouse Air Brake Technologies
32.3x16.4%US$34.2b
CAT Caterpillar
17.4x-0.08%US$185.4b
ALSN Allison Transmission Holdings
14x4.5%US$10.1b
PCAR PACCAR
12.5x-0.03%US$58.9b

Price-To-Earnings vs Peers: PCAR is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does PCAR's PE Ratio compare vs other companies in the US Machinery Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
1.8xn/aUS$411.62m
CVGI Commercial Vehicle Group
2.8x-46.6%US$80.23m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$6.00
No more companies available in this PE range
PCAR 12.5xIndustry Avg. 24.2xNo. of Companies9PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PCAR is good value based on its Price-To-Earnings Ratio (12.5x) compared to the US Machinery industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is PCAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PCAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: PCAR is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (22x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PCAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$111.88
US$113.54
+1.5%
10.3%US$129.00US$89.21n/a18
Nov ’25US$103.35
US$110.33
+6.8%
10.3%US$126.00US$88.00n/a18
Oct ’25US$98.05
US$108.98
+11.1%
11.5%US$139.00US$88.00n/a18
Sep ’25US$96.18
US$110.01
+14.4%
11.8%US$139.00US$88.00n/a18
Aug ’25US$96.30
US$112.54
+16.9%
10.0%US$139.00US$88.00n/a19
Jul ’25US$101.84
US$120.51
+18.3%
11.0%US$147.00US$88.00n/a20
Jun ’25US$107.50
US$119.51
+11.2%
12.2%US$147.00US$88.00n/a20
May ’25US$106.34
US$115.39
+8.5%
14.5%US$147.00US$88.00n/a21
Apr ’25US$123.10
US$109.34
-11.2%
12.7%US$136.00US$84.00n/a21
Mar ’25US$113.19
US$103.22
-8.8%
9.9%US$125.00US$84.00n/a19
Feb ’25US$102.02
US$102.43
+0.4%
10.5%US$125.00US$84.00n/a19
Jan ’25US$97.65
US$93.33
-4.4%
12.2%US$116.00US$78.00n/a18
Dec ’24US$93.18
US$92.50
-0.7%
11.2%US$115.00US$78.00n/a18
Nov ’24US$83.15
US$92.50
+11.2%
11.2%US$115.00US$78.00US$103.3518
Oct ’24US$85.02
US$88.67
+4.3%
10.3%US$115.00US$74.00US$98.0518
Sep ’24US$83.52
US$89.16
+6.8%
10.8%US$115.00US$74.00US$96.1820
Aug ’24US$86.43
US$87.81
+1.6%
11.4%US$115.00US$74.00US$96.3020
Jul ’24US$83.65
US$80.12
-4.2%
5.2%US$90.00US$73.00US$101.8419
Jun ’24US$70.02
US$80.70
+15.3%
8.0%US$103.00US$73.00US$107.5021
May ’24US$74.79
US$80.08
+7.1%
9.1%US$103.00US$71.00US$106.3419
Apr ’24US$73.20
US$74.91
+2.3%
10.9%US$98.00US$61.00US$123.1019
Mar ’24US$73.05
US$74.74
+2.3%
11.2%US$98.00US$61.00US$113.1918
Feb ’24US$74.24
US$72.93
-1.8%
11.1%US$97.33US$60.67US$102.0218
Jan ’24US$65.98
US$68.51
+3.8%
10.5%US$90.67US$60.00US$97.6517
Dec ’23US$70.63
US$65.61
-7.1%
5.4%US$71.33US$60.00US$93.1817
Nov ’23US$64.63
US$65.30
+1.0%
5.6%US$71.33US$60.00US$83.1518

Analyst Forecast: Target price is less than 20% higher than the current share price.

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