Intrinsic value of Paccar - PCAR

Previous Close

$66.41

  Intrinsic Value

$26.95

stock screener

  Rating & Target

str. sell

-59%

  Value-price divergence*

-81%

Previous close

$66.41

 
Intrinsic value

$26.95

 
Up/down potential

-59%

 
Rating

str. sell

 
Value-price divergence*

-81%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of PCAR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 23.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -10.89
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  17,033
  17,374
  17,773
  18,230
  18,743
  19,311
  19,935
  20,613
  21,348
  22,140
  22,990
  23,899
  24,869
  25,901
  26,999
  28,164
  29,398
  30,704
  32,086
  33,546
  35,087
  36,713
  38,429
  40,236
  42,141
  44,148
  46,260
  48,483
  50,823
  53,284
  55,873
Variable operating expenses, $m
 
  7,123
  7,287
  7,474
  7,685
  7,918
  8,173
  8,452
  8,753
  9,077
  9,426
  9,798
  10,196
  10,620
  11,070
  11,547
  12,053
  12,589
  13,155
  13,754
  14,386
  15,053
  15,756
  16,497
  17,278
  18,100
  18,967
  19,878
  20,837
  21,846
  22,908
Fixed operating expenses, $m
 
  9,421
  9,656
  9,898
  10,145
  10,399
  10,659
  10,925
  11,198
  11,478
  11,765
  12,059
  12,361
  12,670
  12,987
  13,311
  13,644
  13,985
  14,335
  14,693
  15,061
  15,437
  15,823
  16,219
  16,624
  17,040
  17,466
  17,902
  18,350
  18,809
  19,279
Total operating expenses, $m
  15,945
  16,544
  16,943
  17,372
  17,830
  18,317
  18,832
  19,377
  19,951
  20,555
  21,191
  21,857
  22,557
  23,290
  24,057
  24,858
  25,697
  26,574
  27,490
  28,447
  29,447
  30,490
  31,579
  32,716
  33,902
  35,140
  36,433
  37,780
  39,187
  40,655
  42,187
Operating income, $m
  1,088
  830
  830
  858
  913
  995
  1,103
  1,237
  1,397
  1,584
  1,799
  2,041
  2,312
  2,612
  2,943
  3,305
  3,701
  4,130
  4,596
  5,099
  5,641
  6,224
  6,850
  7,521
  8,239
  9,007
  9,828
  10,703
  11,636
  12,629
  13,686
EBITDA, $m
  2,081
  1,836
  1,860
  1,914
  1,999
  2,113
  2,257
  2,431
  2,634
  2,867
  3,130
  3,425
  3,752
  4,112
  4,507
  4,937
  5,404
  5,909
  6,455
  7,042
  7,673
  8,351
  9,076
  9,852
  10,681
  11,565
  12,508
  13,512
  14,580
  15,716
  16,923
Interest expense (income), $m
  108
  297
  306
  317
  330
  345
  361
  379
  398
  419
  442
  466
  492
  519
  549
  580
  613
  648
  685
  725
  766
  810
  856
  905
  957
  1,011
  1,068
  1,128
  1,191
  1,258
  1,328
Earnings before tax, $m
  1,130
  533
  524
  541
  583
  650
  742
  858
  999
  1,165
  1,357
  1,575
  1,820
  2,093
  2,394
  2,725
  3,088
  3,482
  3,910
  4,374
  4,875
  5,414
  5,993
  6,616
  7,283
  7,997
  8,760
  9,575
  10,444
  11,371
  12,358
Tax expense, $m
  608
  144
  141
  146
  157
  175
  200
  232
  270
  315
  366
  425
  491
  565
  646
  736
  834
  940
  1,056
  1,181
  1,316
  1,462
  1,618
  1,786
  1,966
  2,159
  2,365
  2,585
  2,820
  3,070
  3,337
Net income, $m
  522
  389
  382
  395
  425
  474
  541
  626
  729
  851
  991
  1,150
  1,329
  1,528
  1,748
  1,989
  2,254
  2,542
  2,855
  3,193
  3,558
  3,952
  4,375
  4,829
  5,316
  5,837
  6,395
  6,990
  7,624
  8,301
  9,022

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,057
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  20,639
  17,929
  18,342
  18,813
  19,342
  19,929
  20,572
  21,273
  22,031
  22,848
  23,725
  24,663
  25,664
  26,730
  27,863
  29,065
  30,338
  31,687
  33,112
  34,619
  36,210
  37,888
  39,658
  41,524
  43,490
  45,560
  47,740
  50,034
  52,449
  54,989
  57,660
Adjusted assets (=assets-cash), $m
  17,582
  17,929
  18,342
  18,813
  19,342
  19,929
  20,572
  21,273
  22,031
  22,848
  23,725
  24,663
  25,664
  26,730
  27,863
  29,065
  30,338
  31,687
  33,112
  34,619
  36,210
  37,888
  39,658
  41,524
  43,490
  45,560
  47,740
  50,034
  52,449
  54,989
  57,660
Revenue / Adjusted assets
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
  0.969
Average production assets, $m
  5,724
  5,838
  5,972
  6,125
  6,298
  6,489
  6,698
  6,926
  7,173
  7,439
  7,725
  8,030
  8,356
  8,703
  9,072
  9,463
  9,878
  10,317
  10,781
  11,271
  11,789
  12,336
  12,912
  13,519
  14,159
  14,834
  15,543
  16,290
  17,076
  17,903
  18,773
Working capital, $m
  11,070
  8,166
  8,353
  8,568
  8,809
  9,076
  9,369
  9,688
  10,034
  10,406
  10,805
  11,232
  11,688
  12,174
  12,690
  13,237
  13,817
  14,431
  15,080
  15,766
  16,491
  17,255
  18,061
  18,911
  19,806
  20,749
  21,742
  22,787
  23,887
  25,044
  26,260
Total debt, $m
  8,475
  8,742
  9,067
  9,439
  9,856
  10,318
  10,825
  11,377
  11,975
  12,618
  13,309
  14,049
  14,837
  15,677
  16,570
  17,517
  18,521
  19,583
  20,707
  21,894
  23,147
  24,470
  25,864
  27,335
  28,884
  30,515
  32,233
  34,041
  35,944
  37,945
  40,050
Total liabilities, $m
  13,861
  14,128
  14,453
  14,825
  15,242
  15,704
  16,211
  16,763
  17,361
  18,004
  18,695
  19,435
  20,223
  21,063
  21,956
  22,903
  23,907
  24,969
  26,093
  27,280
  28,533
  29,856
  31,250
  32,721
  34,270
  35,901
  37,619
  39,427
  41,330
  43,331
  45,436
Total equity, $m
  6,778
  3,801
  3,888
  3,988
  4,101
  4,225
  4,361
  4,510
  4,671
  4,844
  5,030
  5,229
  5,441
  5,667
  5,907
  6,162
  6,432
  6,718
  7,020
  7,339
  7,676
  8,032
  8,407
  8,803
  9,220
  9,659
  10,121
  10,607
  11,119
  11,658
  12,224
Total liabilities and equity, $m
  20,639
  17,929
  18,341
  18,813
  19,343
  19,929
  20,572
  21,273
  22,032
  22,848
  23,725
  24,664
  25,664
  26,730
  27,863
  29,065
  30,339
  31,687
  33,113
  34,619
  36,209
  37,888
  39,657
  41,524
  43,490
  45,560
  47,740
  50,034
  52,449
  54,989
  57,660
Debt-to-equity ratio
  1.250
  2.300
  2.330
  2.370
  2.400
  2.440
  2.480
  2.520
  2.560
  2.610
  2.650
  2.690
  2.730
  2.770
  2.810
  2.840
  2.880
  2.920
  2.950
  2.980
  3.020
  3.050
  3.080
  3.110
  3.130
  3.160
  3.180
  3.210
  3.230
  3.250
  3.280
Adjusted equity ratio
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  522
  389
  382
  395
  425
  474
  541
  626
  729
  851
  991
  1,150
  1,329
  1,528
  1,748
  1,989
  2,254
  2,542
  2,855
  3,193
  3,558
  3,952
  4,375
  4,829
  5,316
  5,837
  6,395
  6,990
  7,624
  8,301
  9,022
Depreciation, amort., depletion, $m
  993
  1,006
  1,030
  1,056
  1,086
  1,119
  1,155
  1,194
  1,237
  1,283
  1,332
  1,384
  1,441
  1,500
  1,564
  1,632
  1,703
  1,779
  1,859
  1,943
  2,033
  2,127
  2,226
  2,331
  2,441
  2,558
  2,680
  2,809
  2,944
  3,087
  3,237
Funds from operations, $m
  3,007
  1,396
  1,412
  1,451
  1,511
  1,593
  1,696
  1,820
  1,966
  2,133
  2,322
  2,534
  2,769
  3,028
  3,312
  3,621
  3,957
  4,321
  4,713
  5,136
  5,591
  6,079
  6,601
  7,160
  7,758
  8,395
  9,074
  9,798
  10,568
  11,388
  12,258
Change in working capital, $m
  706
  160
  188
  215
  241
  267
  293
  319
  345
  372
  399
  427
  456
  485
  516
  547
  580
  614
  649
  686
  724
  764
  806
  850
  895
  943
  993
  1,045
  1,100
  1,157
  1,217
Cash from operations, $m
  2,301
  1,410
  1,224
  1,236
  1,270
  1,326
  1,403
  1,501
  1,621
  1,761
  1,923
  2,107
  2,313
  2,543
  2,796
  3,074
  3,377
  3,707
  4,064
  4,450
  4,867
  5,314
  5,795
  6,311
  6,862
  7,452
  8,082
  8,753
  9,469
  10,231
  11,042
Maintenance CAPEX, $m
  0
  -987
  -1,006
  -1,030
  -1,056
  -1,086
  -1,119
  -1,155
  -1,194
  -1,237
  -1,283
  -1,332
  -1,384
  -1,441
  -1,500
  -1,564
  -1,632
  -1,703
  -1,779
  -1,859
  -1,943
  -2,033
  -2,127
  -2,226
  -2,331
  -2,441
  -2,558
  -2,680
  -2,809
  -2,944
  -3,087
New CAPEX, $m
  -1,965
  -114
  -134
  -153
  -172
  -191
  -209
  -228
  -247
  -266
  -285
  -305
  -326
  -347
  -369
  -391
  -415
  -439
  -464
  -490
  -518
  -546
  -576
  -607
  -640
  -674
  -710
  -747
  -786
  -827
  -870
Cash from investing activities, $m
  -1,564
  -1,101
  -1,140
  -1,183
  -1,228
  -1,277
  -1,328
  -1,383
  -1,441
  -1,503
  -1,568
  -1,637
  -1,710
  -1,788
  -1,869
  -1,955
  -2,047
  -2,142
  -2,243
  -2,349
  -2,461
  -2,579
  -2,703
  -2,833
  -2,971
  -3,115
  -3,268
  -3,427
  -3,595
  -3,771
  -3,957
Free cash flow, $m
  737
  309
  84
  53
  42
  49
  75
  118
  180
  258
  355
  470
  603
  755
  927
  1,118
  1,331
  1,565
  1,821
  2,101
  2,405
  2,735
  3,092
  3,477
  3,891
  4,337
  4,814
  5,326
  5,874
  6,460
  7,085
Issuance/(repayment) of debt, $m
  47
  267
  325
  371
  417
  462
  507
  552
  598
  644
  691
  739
  789
  840
  893
  947
  1,004
  1,062
  1,124
  1,187
  1,253
  1,323
  1,395
  1,470
  1,549
  1,631
  1,718
  1,808
  1,903
  2,002
  2,105
Issuance/(repurchase) of shares, $m
  -71
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  5
  267
  325
  371
  417
  462
  507
  552
  598
  644
  691
  739
  789
  840
  893
  947
  1,004
  1,062
  1,124
  1,187
  1,253
  1,323
  1,395
  1,470
  1,549
  1,631
  1,718
  1,808
  1,903
  2,002
  2,105
Total cash flow (excl. dividends), $m
  728
  577
  409
  424
  459
  511
  582
  670
  777
  902
  1,046
  1,209
  1,392
  1,595
  1,819
  2,065
  2,334
  2,627
  2,945
  3,288
  3,659
  4,058
  4,487
  4,947
  5,440
  5,968
  6,532
  7,134
  7,777
  8,461
  9,190
Retained Cash Flow (-), $m
  162
  -80
  -87
  -100
  -112
  -124
  -136
  -149
  -161
  -173
  -186
  -199
  -212
  -226
  -240
  -255
  -270
  -286
  -302
  -319
  -337
  -356
  -375
  -396
  -417
  -439
  -462
  -486
  -512
  -538
  -566
Prev. year cash balance distribution, $m
 
  3,057
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,554
  321
  324
  347
  387
  446
  522
  616
  729
  860
  1,010
  1,180
  1,369
  1,579
  1,811
  2,064
  2,341
  2,642
  2,969
  3,322
  3,702
  4,112
  4,552
  5,024
  5,529
  6,070
  6,648
  7,265
  7,923
  8,624
Discount rate, %
 
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
 
  3,343
  282
  265
  262
  268
  280
  296
  312
  327
  339
  345
  345
  340
  328
  310
  288
  262
  233
  203
  173
  144
  117
  93
  72
  54
  40
  28
  20
  13
  9
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks worldwide. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods. The company 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. This segment also provides 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 owner/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for acquisition of trucks and related equipment. The company also manufactures and sells industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

FINANCIAL RATIOS  of  Paccar (PCAR)

Valuation Ratios
P/E Ratio 44.6
Price to Sales 1.4
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 10.1
Price to Free Cash Flow 69.3
Growth Rates
Sales Growth Rate -10.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13.9%
Cap. Spend. - 3 Yr. Gr. Rate 1%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 125%
Total Debt to Equity 125%
Interest Coverage 11
Management Effectiveness
Return On Assets 2.7%
Ret/ On Assets - 3 Yr. Avg. 5.9%
Return On Total Capital 3.4%
Ret/ On T. Cap. - 3 Yr. Avg. 7.7%
Return On Equity 7.6%
Return On Equity - 3 Yr. Avg. 17.1%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 19.7%
Gross Margin - 3 Yr. Avg. 19%
EBITDA Margin 13.1%
EBITDA Margin - 3 Yr. Avg. 15.6%
Operating Margin 6.4%
Oper. Margin - 3 Yr. Avg. 9.7%
Pre-Tax Margin 6.6%
Pre-Tax Margin - 3 Yr. Avg. 9.8%
Net Profit Margin 3.1%
Net Profit Margin - 3 Yr. Avg. 6.2%
Effective Tax Rate 53.8%
Eff/ Tax Rate - 3 Yr. Avg. 39.3%
Payout Ratio 158.8%

PCAR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PCAR stock intrinsic value calculation we used $17033 million for the last fiscal year's total revenue generated by Paccar. The default revenue input number comes from 2016 income statement of Paccar. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our PCAR stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.3%, whose default value for PCAR is calculated based on our internal credit rating of Paccar, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Paccar.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of PCAR stock the variable cost ratio is equal to 41%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $9191 million in the base year in the intrinsic value calculation for PCAR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Paccar.

Corporate tax rate of 27% is the nominal tax rate for Paccar. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the PCAR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for PCAR are equal to 33.6%.

Life of production assets of 5.8 years is the average useful life of capital assets used in Paccar operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for PCAR is equal to 47%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6778 million for Paccar - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 348.958 million for Paccar is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Paccar at the current share price and the inputted number of shares is $23.2 billion.

RELATED COMPANIES Price Int.Val. Rating
NAV Navistar Inter 26.94 12.17  str.sell
F Ford Motor 11.47 11.02  hold
CMI Cummins 151.06 109.83  sell
CNHI CNH Industrial 10.76 3.69  str.sell
WNC Wabash Nationa 23.17 30.58  buy
PAG Penske Automot 49.05 33.82  sell

COMPANY NEWS

▶ PACCAR Increases Regular Quarterly Cash Dividend   [Apr-25-17 05:10PM  Business Wire]
▶ Paccar meets 1Q profit forecasts   [08:14AM  Associated Press]
▶ 3 Reasons Tesla Wants to Sell Trucks Too   [Apr-20-17 10:48AM  Barrons.com]
▶ Trucks to hit Tesla roadblock?   [Apr-18-17 05:18PM  CNBC Videos]
▶ Self-Driving Cars May Just Be the Start   [Mar-26-17 02:00PM  Oilprice.com]
▶ NVIDIA Develops Driverless Trucks With PACCAR   [06:29AM  at Investopedia]
▶ Caterpillar: Worst. Cycle. Ever.   [Feb-01-17 12:27PM  at Barrons.com]
▶ PACCAR Keeps Hitting the Brakes   [10:33AM  at Motley Fool]
▶ Deere: 'My Wife is Worried About Our Negative Calls'   [Dec-30-16 10:44AM  at Barrons.com]
▶ 4 Things PACCAR Inc.'s CEO Wants You to Know for 2017   [Dec-20-16 04:50PM  at Motley Fool]
▶ How PACCAR Inc (PCAR) Stacks Up Against Its Peers   [Dec-10-16 06:15PM  at Insider Monkey]
▶ Is Moodys Corporation (MCO) A Good Stock To Buy?   [06:16AM  at Insider Monkey]
▶ Why PACCAR Inc Stock Jumped 13% in November   [Dec-02-16 12:17PM  at Motley Fool]
▶ Trump win boosts coal, hits renewable stocks   [Nov-09-16 03:47PM  Reuters]
▶ The Future Of Supply Chain Planning   [11:50AM  at Forbes]
▶ Oshkosh Corporation: 3 Risks for Investors   [Oct-13-16 11:12PM  at Motley Fool]
▶ 3 Strengths of Oshkosh Corporation   [Oct-08-16 10:27AM  at Motley Fool]
Stock chart of PCAR Financial statements of PCAR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.