Paccar Inc. is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced diesel engines, provides financial services and information technology, and distributes truck parts related to its principal business. The company is based in Bloomfield Hills, Michigan.
PCAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Paccar Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Paccar Inc ranked in the 47th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Paccar Inc ended up being:
The company has produced more trailing twelve month cash flow than 89.78% of its sector Industrials.
Paccar Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 10.35% of tickers in our DCF set.
PCAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 10.35% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PCAR, try AOS, ODFL, B, FC, and SOTK.
Summary List Placement Paccar shares jumped around 3% Wednesday after the semi-truck manufacturer announced a strategic partnership with the Amazon-backed autonomous driving start-up Aurora. The two companies are looking to combine their respective expertise to develop, test, and sell semi-trucks powered by Aurora's autonomous-driving technology. "Paccar looks forward to partnering with Aurora because of their industry-leading autonomous driving technology and impressive team," Preston Feight, Paccar's chief executive officer, said in a press release on Tuesday. "This strategic partnership complements Paccar's best-in-class commercial vehicle quality, technology, and innovation." Read More: GOLDMAN SACHS: Buy these 25 stocks best-positioned to juice profits in 2021 as stimulus and vacci...
BELLEVUE, Wash.--(BUSINESS WIRE)--PACCAR (Nasdaq: PCAR) and Aurora have signed a global, strategic agreement to develop, test and commercialize autonomous Peterbilt and Kenworth trucks. This collaboration will integrate PACCAR’s autonomous vehicle platform with the Aurora Driver to enhance the safety and operational efficiency of PACCAR’s customers. In the strategic partnership, PACCAR provides autonomous-enabled vehicles with industry-leading quality, durability and reliability resulting from
Summary List Placement Autonomous vehicle startup Aurora on Tuesday announced a key partnership that brings it closer to its goal of deploying self-driving trucks. The Amazon-backed firm is teaming up with Paccar, a major truck manufacturer that builds light-, medium-, and heavy-duty trucks under well-known nameplates including Peterbilt and Kenworth. Under the new agreement, the two companies will develop, test, and sell vehicles that marry Aurora's autonomous-driving tech with Paccar's vehicles, Aurora said. "We have entered into a strategic partnership with Paccar that combines their considerable expertise in heavy-duty truck development, manufacturing, and sales with our deep understanding of autonomous vehicle technology to bring a safe, efficient self-driving product to market qui...