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:
Below please find a table outlining a discounted cash flow forecast for PCAR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Paccar Inc ranked in the 42th 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. In terms of the factors that were most noteworthy in this DCF analysis for PCAR, they are:
As a business, PCAR is generating more cash flow than 84.74% of positive cash flow stocks in the Industrials.
Paccar Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 12.29% of tickers in our DCF set.
PCAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 12.29% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Paccar Inc? See WCN, GWW, LMT, NOC, and AME.
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Leyland Trucks, a PACCAR company (Nasdaq:PCAR), located in Preston Lancashire, earned the prestigious Queen’s Award for Enterprise in International Trade 2020 for increasing exports by almost 50% over the last three years.