Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 14.4x · ROE 17.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.2B | $10.5B | $10.2B | $10.9B | $8.6B | $8.6B | $4.8B | $4.1B | $3.4B | $4.1B | $4.5B |
| Enterprise Value | $20.9B | $19.2B | $18.4B | $18.6B | $15.4B | $14.9B | $11.9B | $12.8B | $9.4B | $10.0B | $9.6B |
| P/E Ratio → | 13.09 | 11.20 | 10.52 | 10.36 | 6.20 | 7.20 | 8.81 | 9.51 | 7.29 | 6.70 | 12.99 |
| P/S Ratio | 0.38 | 0.33 | 0.32 | 0.35 | 0.31 | 0.33 | 0.23 | 0.18 | 0.15 | 0.19 | 0.22 |
| P/B Ratio | 2.19 | 1.88 | 1.95 | 2.30 | 2.05 | 2.09 | 1.44 | 1.47 | 1.30 | 1.69 | 2.51 |
| P/FCF | 16.43 | 14.16 | 12.57 | 15.20 | 7.27 | 8.19 | 4.71 | 15.16 | 11.11 | 10.91 | 26.26 |
| P/OCF | 11.42 | 9.84 | 8.64 | 9.98 | 5.86 | 6.61 | 3.98 | 7.99 | 5.59 | 6.59 | 11.96 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.60 | 0.58 | 0.60 | 0.55 | 0.58 | 0.58 | 0.55 | 0.41 | 0.47 | 0.48 |
| EV / EBITDA | 14.40 | 13.24 | 12.01 | 11.64 | 9.53 | 10.05 | 14.54 | 16.77 | 12.23 | 14.14 | 14.49 |
| EV / EBIT | 16.33 | 12.61 | 11.71 | 10.90 | 7.77 | 8.72 | 13.78 | 15.97 | 11.76 | 13.89 | 14.94 |
| EV / FCF | — | 25.99 | 22.68 | 25.83 | 13.09 | 14.22 | 11.73 | 46.77 | 30.42 | 26.53 | 56.71 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.4% | 16.4% | 16.4% | 16.6% | 17.4% | 17.4% | 15.6% | 14.9% | 15.0% | 15.1% | 14.7% |
| Operating Margin | 4.0% | 4.0% | 4.3% | 4.7% | 5.3% | 5.3% | 3.4% | 2.8% | 2.9% | 2.9% | 2.9% |
| Net Profit Margin | 2.9% | 2.9% | 3.0% | 3.6% | 5.0% | 4.6% | 2.7% | 1.9% | 2.1% | 2.9% | 1.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.3% | 17.3% | 19.4% | 24.8% | 33.4% | 32.0% | 17.7% | 16.0% | 18.6% | 29.2% | 19.0% |
| ROA | 5.3% | 5.3% | 6.0% | 7.4% | 10.0% | 8.9% | 4.0% | 3.5% | 4.4% | 6.3% | 4.1% |
| ROIC | 6.9% | 6.9% | 8.0% | 9.3% | 10.4% | 9.8% | 4.8% | 4.9% | 5.9% | 6.0% | 6.4% |
| ROCE | 11.5% | 11.5% | 13.5% | 14.9% | 16.0% | 15.3% | 8.3% | 9.1% | 11.7% | 12.0% | 13.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.58 | 1.58 | 1.58 | 1.63 | 1.67 | 1.56 | 2.16 | 3.08 | 2.28 | 2.44 | 2.92 |
| Debt / EBITDA | 6.07 | 6.07 | 5.40 | 4.85 | 4.31 | 4.33 | 8.76 | 11.37 | 7.82 | 8.39 | 7.82 |
| Net Debt / Equity | — | 1.57 | 1.57 | 1.61 | 1.64 | 1.54 | 2.15 | 3.07 | 2.27 | 2.42 | 2.91 |
| Net Debt / EBITDA | 6.03 | 6.03 | 5.35 | 4.79 | 4.24 | 4.26 | 8.70 | 11.33 | 7.76 | 8.32 | 7.78 |
| Debt / FCF | — | 11.83 | 10.11 | 10.64 | 5.82 | 6.03 | 7.02 | 31.61 | 19.31 | 15.62 | 30.45 |
| Interest Coverage | 5.82 | 5.82 | 17.89 | 7.47 | 16.14 | 17.96 | 5.50 | 3.83 | 4.09 | 4.21 | 4.73 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.99 | 0.99 | 0.91 | 1.00 | 0.99 | 0.95 | 0.94 | 0.98 | 1.01 | 1.01 | 1.05 |
| Quick Ratio | 0.22 | 0.22 | 0.20 | 0.25 | 0.25 | 0.22 | 0.21 | 0.20 | 0.21 | 0.22 | 0.24 |
| Cash Ratio | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Asset Turnover | — | 1.73 | 1.91 | 1.97 | 1.97 | 1.90 | 1.54 | 1.66 | 2.09 | 2.03 | 2.27 |
| Inventory Turnover | 5.52 | 5.52 | 5.74 | 6.00 | 6.55 | 6.75 | 5.04 | 4.63 | 4.79 | 4.61 | 5.03 |
| Days Sales Outstanding | — | 12.28 | 11.48 | 13.16 | 11.90 | 10.48 | 14.41 | 15.12 | 14.88 | 16.30 | 15.95 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 3.3% | 2.7% | 1.7% | 1.8% | 1.7% | 1.4% | 3.2% | 3.5% | 2.6% | 2.1% |
| Payout Ratio | 36.8% | 36.8% | 28.3% | 17.1% | 11.2% | 12.0% | 12.5% | 30.0% | 25.7% | 17.7% | 27.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.6% | 8.9% | 9.5% | 9.7% | 16.1% | 13.9% | 11.3% | 10.5% | 13.7% | 14.9% | 7.7% |
| FCF Yield | 6.1% | 7.1% | 8.0% | 6.6% | 13.8% | 12.2% | 21.2% | 6.6% | 9.0% | 9.2% | 3.8% |
| Buyback Yield | 1.3% | 1.5% | 0.6% | 3.3% | 10.2% | 3.3% | 0.6% | 4.1% | 2.0% | 0.5% | 3.9% |
| Total Shareholder Yield | 4.1% | 4.8% | 3.3% | 5.0% | 12.0% | 4.9% | 2.0% | 7.2% | 5.5% | 3.1% | 6.0% |
| Shares Outstanding | — | $66M | $67M | $68M | $74M | $80M | $81M | $82M | $85M | $86M | $86M |
Cyclical Margin Compression
According to current market data, PAG trades at a 12.90x TTM P/E, which appears to discount the potential for further margin compression as the industry shifts from supply-constrained pricing to a more competitive, volume-driven environment compared to its historical trading ranges and peer group averages.
The forward P/E of 13.60 suggests that investors are pricing in a deceleration in earnings growth, likely anticipating the normalization of Gross Profit per Unit (GPU). While the PEG ratio of 0.81 might imply undervaluation, this metric warrants caution given the volatility in earnings quality and the heavy reliance on non-operating equity contributions from Penske Transportation Solutions.
Based on reported financial statements, PAG's ROIC has remained stagnant, hovering between 1.5% and 2.0% over the last ten quarters, which suggests that the company is struggling to generate meaningful incremental returns on its expanding asset base despite its diversified business model.
The low ROIC relative to the cost of capital indicates that recent acquisitions and inventory investments have not yet translated into superior compounding of shareholder value. Investors should monitor whether the company can improve its asset turnover, which has remained range-bound, to drive better returns in a higher interest rate environment.
As indicated by the latest quarterly data, PAG's cash conversion cycle has trended toward 66 days in 2026Q1, reflecting a persistent drag from inventory management that appears to be intensifying as vehicle supply chains normalize and dealer floorplan requirements increase across the global retail footprint.
The increase in days inventory outstanding (DIO) to 67 days suggests that the company is carrying a heavier inventory burden, which directly pressures cash flow and increases interest expense. This inefficiency highlights the difficulty of maintaining lean operations when manufacturer production levels outpace current consumer demand.
Financial analysts frequently misapply standard Debt-to-Equity ratios to PAG, often overlooking the exclusion of floorplan notes payable, which, based on reported figures, obscures the true leverage profile and the company's sensitivity to interest rate fluctuations inherent in the dealership business model.
By failing to include floorplan debt, the reported D/E ratio of 1.62 significantly understates the actual financial risk and the impact of rising interest costs on net margins. A more accurate assessment of leverage should incorporate these operational liabilities to better reflect the company's true debt service burden.
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Quick answers to the most common questions about buying PAG stock.
Penske Automotive Group, Inc.'s current P/E ratio is 13.1x. The historical average is 19.1x. This places it at the 63th percentile of its historical range.
Penske Automotive Group, Inc.'s current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Penske Automotive Group, Inc.'s return on equity (ROE) is 17.3%. The historical average is 12.6%.
Based on historical data, Penske Automotive Group, Inc. is trading at a P/E of 13.1x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Penske Automotive Group, Inc.'s current dividend yield is 2.81% with a payout ratio of 36.8%.
Penske Automotive Group, Inc. has 16.4% gross margin and 4.0% operating margin.
Penske Automotive Group, Inc.'s Debt/EBITDA ratio is 6.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.