Latest Ratios: P/E Ratio 27.6x · EV/EBITDA 14.8x · ROE 12.9%. (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 | $65.5B | $57.7B | $54.8B | $51.3B | $34.5B | $30.7B | $30.0B | $27.5B | $20.1B | $25.1B | $22.5B |
| Enterprise Value | $56.2B | $48.4B | $63.6B | $58.5B | $41.5B | $38.1B | $37.7B | $35.1B | $27.5B | $32.9B | $30.1B |
| P/E Ratio → | 27.60 | 24.28 | 13.17 | 11.15 | 11.47 | 16.48 | 23.10 | 11.51 | 9.16 | 15.00 | 43.03 |
| P/S Ratio | 2.30 | 2.03 | 1.63 | 1.46 | 1.20 | 1.31 | 1.60 | 1.07 | 0.86 | 1.29 | 1.32 |
| P/B Ratio | 3.40 | 2.99 | 3.13 | 3.23 | 2.62 | 2.65 | 2.88 | 2.83 | 2.34 | 3.12 | 3.32 |
| P/FCF | 21.62 | 19.04 | 18.92 | 17.51 | 21.10 | 55.52 | 22.22 | 30.90 | 19.33 | 28.86 | 66.92 |
| P/OCF | 14.83 | 13.06 | 11.80 | 12.24 | 11.41 | 14.06 | 10.03 | 9.61 | 6.72 | 9.24 | 9.77 |
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 | — | 1.70 | 1.89 | 1.66 | 1.44 | 1.62 | 2.02 | 1.37 | 1.17 | 1.69 | 1.77 |
| EV / EBITDA | 14.84 | 12.78 | 10.95 | 8.51 | 9.29 | 11.62 | 14.40 | 8.67 | 7.34 | 10.30 | 10.31 |
| EV / EBIT | 18.99 | 14.37 | 13.00 | 9.83 | 11.29 | 16.50 | 24.02 | 11.81 | 10.21 | 15.75 | 15.61 |
| EV / FCF | — | 15.99 | 21.97 | 19.97 | 25.37 | 68.75 | 27.98 | 39.48 | 26.40 | 37.90 | 89.65 |
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 | 16.2% | 16.2% | 19.9% | 21.7% | 18.1% | 18.2% | 18.5% | 18.8% | 18.7% | 18.9% | 19.8% |
| Operating Margin | 10.4% | 10.4% | 14.5% | 16.9% | 12.8% | 9.8% | — | 11.6% | 11.4% | 10.8% | 11.3% |
| Net Profit Margin | 8.4% | 8.4% | 12.4% | 13.1% | 10.4% | 7.9% | 6.9% | 9.3% | 9.3% | 8.6% | 3.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.9% | 12.9% | 24.9% | 31.7% | 24.3% | 17.0% | 12.9% | 26.1% | 26.4% | 22.6% | 7.6% |
| ROA | 5.4% | 5.4% | 9.9% | 12.4% | 9.6% | 6.5% | 4.6% | 8.9% | 9.0% | 7.6% | 2.5% |
| ROIC | 12.2% | 12.2% | 14.9% | 20.6% | 14.1% | 9.3% | — | 13.4% | 12.7% | 10.3% | 10.0% |
| ROCE | 8.9% | 8.9% | 16.7% | 23.0% | 16.3% | 10.9% | — | 15.7% | 15.3% | 12.7% | 12.3% |
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 | — | — | 0.91 | 0.91 | 0.89 | 0.93 | 1.09 | 1.22 | 1.26 | 1.27 | 1.41 |
| Debt / EBITDA | — | — | 2.74 | 2.09 | 2.61 | 3.28 | 4.32 | 2.91 | 2.88 | 3.19 | 3.27 |
| Net Debt / Equity | — | -0.48 | 0.50 | 0.45 | 0.53 | 0.63 | 0.75 | 0.79 | 0.86 | 0.98 | 1.13 |
| Net Debt / EBITDA | -2.44 | -2.44 | 1.52 | 1.05 | 1.56 | 2.24 | 2.97 | 1.88 | 1.97 | 2.45 | 2.61 |
| Debt / FCF | — | -3.05 | 3.05 | 2.46 | 4.27 | 13.24 | 5.76 | 8.58 | 7.07 | 9.04 | 22.72 |
| Interest Coverage | 9.73 | 9.73 | 157.31 | 1165.96 | — | 562.98 | — | — | — | 1230.35 | 187.27 |
Net cash position: cash ($9.3B) exceeds total debt ($0)
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 | 1.70 | 1.70 | 2.64 | 2.50 | 2.60 | 2.62 | 2.69 | 2.41 | 2.42 | 2.57 | 2.81 |
| Quick Ratio | 1.42 | 1.42 | 2.45 | 2.30 | 2.37 | 2.37 | 2.52 | 2.27 | 2.26 | 2.42 | 2.66 |
| Cash Ratio | 1.17 | 1.17 | 0.76 | 0.70 | 0.66 | 0.62 | 0.68 | 0.63 | 0.59 | 0.60 | 0.63 |
| Asset Turnover | — | 0.64 | 0.78 | 0.86 | 0.87 | 0.80 | 0.66 | 0.90 | 0.92 | 0.83 | 0.83 |
| Inventory Turnover | 10.89 | 10.89 | 11.39 | 10.67 | 10.73 | 9.74 | 12.49 | 18.02 | 16.13 | 17.00 | 18.77 |
| Days Sales Outstanding | — | 25.42 | 230.38 | 205.42 | 198.99 | 209.42 | 253.71 | 18.62 | 20.42 | 21.16 | 18.48 |
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 | 3.5% | 3.9% | 4.2% | 3.0% | 2.9% | 2.3% | 4.1% | 4.1% | 4.0% | 2.2% | 3.7% |
| Payout Ratio | 95.4% | 95.4% | 55.0% | 33.0% | 33.4% | 38.0% | 95.3% | 47.7% | 36.6% | 33.3% | 159.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 4.1% | 7.6% | 9.0% | 8.7% | 6.1% | 4.3% | 8.7% | 10.9% | 6.7% | 2.3% |
| FCF Yield | 4.6% | 5.3% | 5.3% | 5.7% | 4.7% | 1.8% | 4.5% | 3.2% | 5.2% | 3.5% | 1.5% |
| Buyback Yield | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.4% | 1.8% | 0.0% | 0.3% |
| Total Shareholder Yield | 3.5% | 4.0% | 4.2% | 3.0% | 2.9% | 2.3% | 4.3% | 4.5% | 5.8% | 2.2% | 4.0% |
| Shares Outstanding | — | $527M | $527M | $525M | $523M | $523M | $521M | $521M | $528M | $529M | $528M |
Cyclical demand and pricing
According to current market data, PACCAR trades at a forward P/E of 21.27, which appears elevated relative to historical norms and suggests that investors are pricing in a recovery despite the -15.50% year-over-year revenue contraction reported in recent financial statements.
The current valuation premium relative to peers like Traton suggests the market assigns significant value to PACCAR's brand equity and aftermarket parts durability. However, the PEG ratio of 2.12 implies that the current share price may be overestimating the speed of the next cyclical upswing.
Based on reported figures, ROIC has trended downward from 4.9% in 2023Q4 to 2.3% in 2025Q4, indicating that the company is struggling to maintain its historical compounding efficiency as the heavy-duty truck market enters a period of cyclical normalization.
This decay in capital efficiency is likely driven by the combination of lower factory utilization and the high capital intensity required to support the Financial Services segment. Investors should monitor whether this trend reverses as the company optimizes its manufacturing footprint for lower volume environments.
As reported in recent financial statements, the cash conversion cycle has expanded significantly, reaching 88 days in 2025Q4 compared to historical averages, which suggests that PACCAR is facing increased difficulty in managing inventory and receivables during the current industry-wide demand downturn.
The sharp increase in DSO to 162 days in 2025Q4 warrants further investigation, as it may indicate a shift in customer credit terms or a buildup of receivables that could pressure future cash flows. This deterioration in working capital efficiency appears to be a direct consequence of the cooling freight market.
According to recent SEC filings, PACCAR maintains a current ratio of 1.79 as of 2026Q1, providing a stable liquidity buffer that appears sufficient to navigate the current period of revenue contraction and cyclical volatility in the heavy-duty machinery market.
While the quick ratio of 1.49 suggests a reliance on inventory, the company's ability to maintain these levels despite the -15.50% revenue decline indicates a conservative approach to balance sheet management. This liquidity position provides the firm with the flexibility to sustain its dividend policy through the trough.
The P/E ratio is frequently misapplied to PACCAR because it fails to account for the distinct earnings volatility of the captive Financial Services segment, which can distort headline net income during periods of credit cycle shifts or changes in residual value assumptions.
Analysts should instead prioritize EV/EBITDA or a sum-of-the-parts valuation to separate the cyclical manufacturing business from the more stable, interest-rate-sensitive finance arm. Relying solely on P/E risks misinterpreting the company's true earning power during the transition between different phases of the heavy-duty truck cycle.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PCAR stock.
PACCAR Inc's current P/E ratio is 27.6x. The historical average is 19.8x. This places it at the 87th percentile of its historical range.
PACCAR Inc's current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.3x.
PACCAR Inc's return on equity (ROE) is 12.9%. The historical average is 20.5%.
Based on historical data, PACCAR Inc is trading at a P/E of 27.6x. This is at the 87th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PACCAR Inc's current dividend yield is 3.46% with a payout ratio of 95.4%.
PACCAR Inc has 16.2% gross margin and 10.4% operating margin. Operating margin between 10-20% is typical for established companies.