PACCAR Inc (PCAR) fair value: what the stock is really worth
We calculate from audited financials what PACCAR Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 17, 2026.
How to read this chart
60‑month range $43.83 – $138.21 · fair‑value band $87.06 – $168.38 · the $114.73 price screens below the $134.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 17, 2026.
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Australia, Mexico, Europe, Central and South America, and internationally. It operates through three segments: Truck, Parts, and Financial Services.
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PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Australia, Mexico, Europe, Central and South America, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods; and diesel engine products. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment; and operates its own full-service lease outlets. The company manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.
Stock analysis
PACCAR Inc (PCAR) currently trades at $114.73, while our model-based Fair Value estimate is $134.71, implying the stock looks roughly 14.8% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $99.12 per share, and 0 of the 26 models we run sit above the $114.73 price.
Bear case: the Asset-Based group reads lowest at $24.52, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $87.06 (bear) to $168.38 (bull), the price of $114.73 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 52/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
PACCAR Inc reported revenue of $28.4B in FY2025 versus $23.5B in FY2021, a compound +4.9%/yr. Reported net income was $2.4B in FY2025, compounding +6.2%/yr from FY2021.
Key figures
Market cap $66.4B · P/E ratio 24.5 · P/S ratio 2.05 · EPS (TTM) $4.68 · Dividend yield 1.2% · Net margin 8.4% · Return on equity 13.1% · Return on assets (EBIT) 10.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (low confidence).
What moves the price
The share trades about 13% below its 52-week high and 31% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 4% fair-value upside, at 17%, PCAR screens cheaper than that median.
Fair Value models
Bear $87.06Fair Value $134.71Bull $168.38
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($2.44 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.77/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−15.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.7%
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+6.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.8%
Dividend (yield on the price)1.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5% vs 6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 10%
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.9%
Yearly sales growth analysts expect, extended to five years.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Farm & Heavy Construction Machinery · 153 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score52 · Below median
Fair Value upside−24% · Below median
Profitability
Return on equity (TTM)13% · Above median
Return on assets4% · Above median
Net margin (TTM)9% · Above median
Operating margin (TTM)10% · Above median
Growth and dividend
Revenue growth−9% · Bottom 25%
Dividend yield (TTM)1.2% · Below median
Balance sheet
Debt / equity0.57× · Highest 25%
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
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Cite: Fair Value Calculator (2026). "PACCAR Inc Fair Value". https://www.fairvalue-calculator.com/stock/PCAR
Frequently asked questions
Is PACCAR Inc (PCAR) overvalued or undervalued?
As of Sep 17, 2026, our model estimates a fair value of $134.71 versus a price of $114.73, about +17% upside (undervalued).
What is the fair value of PCAR?
Our model-based fair value for PACCAR Inc is $134.71 (as of Sep 17, 2026), built from audited fundamentals. The current price: $114.73.
What is the quality score of PCAR?
PACCAR Inc has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for PACCAR Inc (PCAR)?
Our model-based price target is the fair value of $134.71 (as of Sep 17, 2026) from 26 valuation models. Cautious scenario $87.06, optimistic scenario $168.38. It is a calculation from audited fundamentals, not an analyst target.
What is the PACCAR Inc stock forecast for 2026?
Our models put fair value at $134.71, about +17% upside versus a price of $114.73 (undervalued). Cautious scenario $87.06, optimistic scenario $168.38. The calculation is refreshed regularly with new filings.
What is the revenue of PACCAR Inc (PCAR)?
PACCAR Inc reported trailing-twelve-month revenue of about $27.8B (latest available figure, as of Sep 17, 2026).
Does PACCAR Inc pay a dividend?
PACCAR Inc currently shows a dividend yield of about 1.15% relative to its recent price (as of Sep 17, 2026).
What growth is priced into PACCAR Inc (PCAR)?
For today's price to be fair in a discounted-cash-flow model, PACCAR Inc would have to grow free cash flow by +10.1 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.7 % per year. As of Sep 17, 2026.
What discount rate (WACC) does the fair value of PCAR use?
Our models discount PACCAR Inc at 9.2 %: a base by market capitalisation (large), damped by beta 0.98, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For PACCAR Inc that is +10.1 % per year a year over ten years, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has PACCAR Inc (PCAR) delivered so far?
Over the past 5 years revenue at PACCAR Inc grew +8.7 % a year. The price currently implies +10.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of PACCAR Inc (PCAR) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into PACCAR Inc (+10.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of PACCAR Inc (PCAR)?
The free-cash-flow yield on the price is 4.95 %: that much free cash flow PACCAR Inc produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of PACCAR Inc (PCAR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PACCAR Inc it is $134.71 per share (as of Sep 17, 2026), against a price of $114.73. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is PACCAR Inc stock overvalued or undervalued in 2026?
As of Sep 17, 2026, PCAR trades below its calculated fair value: price $114.73, fair value $134.71, a gap of about +17% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PCAR?
No. The price is what the market pays today ($114.73); the fair value is what the company's own numbers justify ($134.71). For PACCAR Inc the two are $19.98 per share apart. That gap is exactly why we show both numbers side by side.
How much is PACCAR Inc worth?
The market values PACCAR Inc at about $66.4B (market capitalisation, as of Sep 17, 2026). Per share that is $114.73; our models calculate a fair value of $134.71 per share.
What do the bullish and bearish scenarios say about PCAR?
Our models span a range for PACCAR Inc: cautious scenario $87.06, base $134.71, optimistic $168.38 per share (as of Sep 17, 2026, price $114.73). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PCAR?
PACCAR Inc trades at a price-to-earnings ratio of 24.5 (as of Sep 17, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $134.71 is built from several models across several years. Other multiples: PEG 1.3, P/B 3.5, P/S 2.4, EV/EBITDA 21.2.
What is the PEG ratio of PCAR?
The PEG ratio of PACCAR Inc is 1.28 (P/E divided by earnings growth, as of Sep 17, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of PACCAR Inc (PCAR)?
Balance-sheet figures for PACCAR Inc (as of Sep 17, 2026): return on equity 13.1%, debt of 0.57 per unit of equity. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is PCAR from its 52-week high?
PACCAR Inc trades at $114.73, about 13% below its 52-week high of $131.13 and 31% above the low of $87.83 (as of Sep 17, 2026). Distance from the high says nothing about value: that is what the fair value of $134.71 is for.
Which stocks are comparable to PACCAR Inc?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, AB Volvo (publ),, Daimler Truck Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is PACCAR Inc stock attractive at the current price?
The data as of Sep 17, 2026: price $114.73, calculated fair value $134.71 (+17%), Quality Score 52/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PCAR calculated?
We run PACCAR Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $134.71, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. PACCAR Inc currently trades 17 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of PACCAR Inc (PCAR)?
The closing price on Sep 21, 2026 was $114.73. Our model-based fair value is $134.71, about +17% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with PACCAR Inc right now?
A fairly wide model range ($87.06 to $168.38) leaves room in how you read the outcome. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of PACCAR Inc (PCAR) come from?
Earnings per share at PACCAR Inc grew +13.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.6 %, EBIT margin +2.1 %, tax rate +3.1 %, residual (interest, one-offs) +1.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of PACCAR Inc
How large is the market capitalisation of PACCAR Inc (PCAR)?
The market capitalisation of PACCAR Inc is $66.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of PACCAR Inc (PCAR)?
The price-to-sales ratio of PACCAR Inc is 2.05 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of PACCAR Inc (PCAR)?
Earnings per share at PACCAR Inc are $4.68 (price ÷ EPS = P/E 24.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of PACCAR Inc (PCAR)?
The dividend yield of PACCAR Inc is 1.2% (payout 28.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of PACCAR Inc (PCAR)?
The net margin of PACCAR Inc is 8.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of PACCAR Inc (PCAR)?
The return on equity (ROE) of PACCAR Inc is 13.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of PACCAR Inc (PCAR)?
On an EBIT basis the return on assets of PACCAR Inc is 10.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of PACCAR Inc (PCAR)?
The operating margin of PACCAR Inc is 10.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at PACCAR Inc (PCAR)?
Revenue at PACCAR Inc is growing −8.9% versus a year earlier (3y avg −0.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at PACCAR Inc (PCAR)?
Earnings per share at PACCAR Inc are growing +19.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does PACCAR Inc (PCAR) hold?
PACCAR Inc holds more cash than debt, $9.3B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Sep 17, 2026