Penske Automotive Group is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. The company is based in Bloomfield Hills, Michigan.
PAG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PAG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Penske Automotive Group Inc ranked in the 66th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Penske Automotive Group Inc ended up being:
42% of the company's capital comes from equity, which is greater than merely 15.11% of stocks in our cash flow based forecasting set.
Penske Automotive Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 1.05% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Penske Automotive Group Inc has a reliance on debt greater than 82.93% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PAG, try DENN, SNBR, CRWS, CVCO, and HTHT.
While the market driven by short-term sentiment influenced by the accommodative interest rate environment in the US, virus news and stimulus talks, many smart money investors are starting to get cautious towards the current bull run since March and hedging or reducing many of their long positions. Some fund managers are betting on Dow hitting […]
Dear Readers: IPO Edge is pleased to announce that Editor-in-Chief John Jannarone will moderate a SPAC panel at ICR Conference 2021, one of the largest investment conferences of the year the year that will feature several hundred public and private presenting companies. The event has been expanded to encompass not only Consumer and Retail but […]