PACCAR Inc (PCAR) DCF Valuation
Two independent models estimate PACCAR Inc's fair value between $44.26 (conservative case) and $98.32 (analyst consensus).
What would today's price require?
$113.99 is justified only if free cash flow grows about +7.4% a year for the next decade — slower than the company has actually grown.
Current Price
$113.99
Fair-Value Range
$44.26 – $98.32
Market-Implied Growth
+7.4%/yr
vs +16.0% 5Y actual
PCAR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $2.6B · 0.53B shares · net cash $9.3B
Estimated Fair Value
$98.32
-13.7% vs $113.99
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $113.99; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $118 | $123 | $129 | $137 | $145 |
| 9.0% | $104 | $107 | $111 | $116 | $122 |
| 10.0% | $92.97 | $95.48 | $98.32 | $102 | $105 |
| 11.0% | $84.48 | $86.31 | $88.37 | $90.68 | $93.30 |
| 12.0% | $77.63 | $79.01 | $80.54 | $82.23 | $84.13 |
About PACCAR Inc
PACCAR Inc is a global leader specializing in the design, production, and distribution of commercial trucks, covering light, medium, and heavy-duty classes. Its market reach extends across the United States, Europe, Mexico, South America, Australia, and other international territories. The company's operations are divided into three principal segments: Truck, Parts, and Financial Services. The Truck division focuses on engineering, manufacturing, and supplying vehicles tailored for both long-distance highway travel and challenging off-highway applications, primarily for hauling commercial and consumer goods. These vehicles are sold worldwide through an expansive network of independent dealerships, prominently featuring the Kenworth, Peterbilt, and DAF brands. The Parts segment is dedicated to supplying aftermarket components for its trucks and associated commercial vehicles. Through its Financial Services arm, which encompasses full-service leasing under the PacLease trademark, PACCAR offers a wide array of financing and leasing products to both its customers and its dealer network. This segment also delivers equipment financing and administrative assistance to its franchisees. It provides retail loans and leasing options to a diverse clientele, including small, medium, and large commercial trucking firms, independent owner-operators, and various other businesses. Additionally, it facilitates truck inventory financing for independent dealers and directly extends loans and leases to customers for purchasing trucks and related equipment. Beyond its core truck business, PACCAR also fabricates and markets industrial winches under the Braden, Carco, and Gearmatic labels. Established in 1905, PACCAR Inc's corporate headquarters are situated in Bellevue, Washington.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- R. Preston Feight