PCARNEUTRAL

PEG Ratio

1.28x

Updated 368h ago

Sector Performance

59th percentile

PCAR

1.28x

Sector Median

0.94x

Sector Avg

3.01x

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Deep Analysis

The PEG ratio of 1.28x means the stock’s price-earnings multiple is 1.28 times its expected earnings growth rate, so a ratio above 1.0 generally indicates the stock is priced higher than its growth prospects.

Compared to its sector peers, the median PEG is 0.98x, and PCAR sits in the 60th percentile, implying it is more expensive than most of its sector. Year-over-year change and an eight-quarter trend are not available, but the quarter-over-quarter change is +2.4%, showing a slight increase from the prior value of 1.25x. The current level above the sector median, combined with a rising trend, could suggest increasing valuation risk if growth expectations do not materialize. This metric does not directly conflict with the overall NEUTRAL verdict, but the above-median PEG and upward move support a cautious stance rather than a strong buy or sell.

Frequently Asked Questions

What does the PEG Ratio tell investors about PCAR?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are PCAR's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), LNC (0.05x), NKE (0.05x), NCLH (0.05x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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PCAR

1.28x

Sector Median

0.94x

Sector Avg

3.01x

How PCAR's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.