Are PACCAR Inc (PCAR) shares trading below fair value?

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PACCAR Inc (PCAR) achieves a strong valuation score of 71 from Investors Observer analysis. Our proprietary rating system takes into account the overall health of the business by examining the stock’s price, earnings and growth rate to determine if it represents good value. PCAR holds better value than 71% of the shares at its current price. Investors who focus on long-term growth through buy and hold investments will find the valuation ranking particularly relevant when allocating their assets.

PCAR achieves an evaluation ranking of 71 today. Find out what this means to you and get the rest of the leaderboard on PCAR!

Metrics analysis

PCAR has a 12-month price-to-earnings (PE) ratio of 17.3, which puts it around the historic average of around 15. PCAR is currently trading at an average value due to investors paying around this. that the action is worth in relation to its profits. PCAR’s earnings per share (EPS) of 5.04 over the last 12 months justify its share price on the market. The tracking PE ratios do not take into account the company’s projected growth rate. So some companies will have high PE ratios due to high growth recruiting more investors even though the underlying company has produced low profits so far. The PCAR has a 12-month PE to Growth Futures (PEG) ratio of 1.63. The markets are overstating PCAR relative to its projected growth because its PEG ratio is currently above fair market value of 1. The PEG of 5.03999996 comes from dividing its forward price / earnings ratio by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.

Summary

PCAR’s valuation metrics are low at its current price due to an overvalued PEG ratio despite strong growth. PCAR’s PE and PEG are lower than the market average, resulting in a below-average valuation score. Click here for the full PACCAR Inc (PCAR) Inventory Report.


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