PCAR
PACCAR Inc (PCAR)
Last Price$110.13.0%
Market Cap$57.8B
DCF value
$113.4
Undervalued (DCF value)
3.1%
Discount Rate
8.4%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

PCAR DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
18,728.5
(26.8%)
23,522.3
25.6%
28,819.7
22.5%
35,127.4
21.9%
31,564.3
(10.1%)
32,761.7
3.8%
36,790.0
12.3%
34,760.3
(5.5%)
38,723.4
11.4%
42,618.3
10.1%
46,332.5
8.7%
49,748.2
7.4%
52,747.6
6.0%
55,219.4
4.7%
57,065.4
3.3%
58,206.7
2.0%
1,532.0
8.2%
2,275.0
9.7%
3,617.6
12.6%
6,043.1
17.2%
4,456.8
14.1%
3,921.1
12.0%
4,403.3
12.0%
4,160.3
12.0%
4,634.7
12.0%
5,100.8
12.0%
5,545.4
12.0%
5,954.2
12.0%
6,313.2
12.0%
6,609.0
12.0%
6,830.0
12.0%
6,966.6
12.0%
NOPAT
% effective tax rate
1,199.8
6.4%
1,771.4
7.5%
2,830.8
9.8%
4,862.2
13.8%
4,058.4
12.9%
3,570.6
10.9%
4,009.6
10.9%
3,788.4
10.9%
4,220.4
10.9%
4,644.8
10.9%
5,049.6
10.9%
5,421.9
10.9%
5,748.8
10.9%
6,018.2
10.9%
6,219.4
10.9%
6,343.8
10.9%
% of revenue
901.5
4.8%
867.8
3.7%
807.1
2.8%
903.6
2.6%
916.9
2.9%
904.0
2.8%
1,015.1
2.8%
959.1
2.8%
1,068.5
2.8%
1,175.9
2.8%
1,278.4
2.8%
1,372.7
2.8%
1,455.4
2.8%
1,523.6
2.8%
1,574.6
2.8%
1,606.1
2.8%
% of revenue
(1,638.4)
(8.7%)
(1,632.8)
(6.9%)
(1,390.5)
(4.8%)
(1,262.5)
(3.6%)
(1,745.6)
(5.5%)
(1,523.3)
(4.6%)
(1,710.6)
(4.6%)
(1,616.3)
(4.6%)
(1,800.5)
(4.6%)
(1,981.6)
(4.6%)
(2,154.3)
(4.6%)
(2,313.2)
(4.6%)
(2,452.6)
(4.6%)
(2,567.6)
(4.6%)
(2,653.4)
(4.6%)
(2,706.5)
(4.6%)
891.2
4.8%
(239.0)
(1.0%)
(809.5)
(2.8%)
(1,081.5)
(3.1%)
0.1
0.0%
(642.9)
(2.0%)
(722.0)
(2.0%)
(682.1)
(2.0%)
(759.9)
(2.0%)
(836.4)
(2.0%)
(909.2)
(2.0%)
(976.3)
(2.0%)
(1,035.1)
(2.0%)
(1,083.6)
(2.0%)
(1,119.9)
(2.0%)
(1,142.3)
(2.0%)
Free Cash Flow to Firm (FCFF)
% of revenue
1,354.1
7.2%
767.4
3.3%
1,437.9
5.0%
3,421.8
9.7%
3,229.8
10.2%
2,308.3
7.0%
2,592.1
7.0%
2,449.1
7.0%
2,728.4
7.0%
3,002.8
7.0%
3,264.5
7.0%
3,505.2
7.0%
3,716.5
7.0%
3,890.6
7.0%
4,020.7
7.0%
4,101.1
7.0%
% of FCFF used in calculation
81.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.89
0.82
0.75
0.70
0.64
0.59
0.55
0.50
0.46
Discounted FCFF (DFCFF)
1,816.1
2,296.3
2,001.2
2,056.4
2,087.6
2,093.4
2,073.3
2,027.6
1,957.9
1,866.3

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PCAR DCF Value

DCF Value Calculation

as of Mar 07, 2025
Sum of DFCFF
% share of EV
20.3B
40.6%
Terminal Value (TV)
63.9B
Discounted TV
% share of EV
29.7B
59.4%
Total Debt
0.0
Shares outstanding
525.5M
FX rate
1.0
3.1% undervalued

Equity Value Bridge

PCAR DCF Financials

Revenue
$31.6B -> $57.1B 6.1% CAGR
Operating Income
$4,456.8M -> $6,830.0M 4.4% CAGR
FCFF
$3,229.8M -> $4,020.7M 2.2% CAGR

PCAR DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$128.0
$134.0
$142.0
$151.0
$156.0
7.5%
$119.0
$124.0
$130.0
$137.0
$146.0
8.4%
$106.0
$109.0
$113.0
$118.0
$124.0
8.5%
$105.0
$108.0
$112.0
$117.0
$122.0
9.0%
$99.0
$102.0
$105.0
$109.0
$113.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
16.0%
22.0%
29.0%
37.0%
42.0%
7.5%
8.0%
13.0%
18.0%
24.0%
33.0%
8.4%
(4.0%)
(1.0%)
3.0%
7.0%
13.0%
8.5%
(5.0%)
(2.0%)
2.0%
6.0%
11.0%
9.0%
(10.0%)
(7.0%)
(5.0%)
(1.0%)
3.0%

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FAQ

What is PACCAR Inc DCF (discounted cash flow) valuation?

As of Mar 07, 2025, PACCAR Inc's Discounted Cash Flow (DCF) valuation estimates its share price at $113.4. This suggests it may be undervalued by 3.1% compared to its current price of around $110.1, using a WACC of 8.4% and growth rates of 2.0%.

What is PACCAR Inc WACC?

As of Mar 07, 2025, PACCAR Inc's Weighted Average Cost of Capital (WACC) is approximately 8.4%.

What is PACCAR Inc Enterprise Value?

As of Mar 07, 2025, PACCAR Inc's Enterprise Value (EV) is approximately $50.0B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.