Paccar Inc. (PCAR) intrinsic value & 10-year financials

Paccar Inc. (PCAR) has a Graham intrinsic value of $149.80 per share. At $110.82 on Oct 17, 2026, the stock trades 26% below that value. Over the last 10 fiscal years revenue grew 5.9% a year to $28.4B, with an average return on invested capital of 19.5%.

Graham intrinsic value
$149.80
Share price (Oct 17, 2026)
$110.82
Price vs Graham value
26% below
Market cap
$58.4B
Revenue (FY2025)
$28.4B
Revenue growth (10-yr CAGR)
5.9%
ROIC (10-yr avg)
19.5%
Free cash flow (FY2025)
$3.7B

PCAR 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $28.4B $2.4B $4.51 $3.7B — —
FY2024 $33.7B $4.2B $7.90 $3.8B — —
FY2023 $35.1B $4.6B $8.76 $3.5B — —
FY2022 $28.8B $3.0B $5.75 $2.5B — —
FY2021 $23.5B $1.9B $5.32 $1.6B — —
FY2020 $18.7B $1.3B $3.74 $2.4B — —
FY2019 $25.6B $2.4B $6.87 $2.3B — —
FY2018 $23.5B $2.2B $0.00 $2.5B — —
FY2017 $19.5B $1.7B $0.00 $2.3B — —
FY2016 $17.0B $521.7M $0.00 $1.9B — —

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Paccar has demonstrated mature, steady growth, with revenue compounding at 5.9% annually over the past decade.

Paccar 10-year average ROIC is N/A; capital efficiency cannot be assessed from the available history.

Over the decade, Paccar shows that management has aggressively returned capital to shareholders by retiring 100.0% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Paccar is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $149.80 per share.

PCAR stock: frequently asked questions

What is the intrinsic value of Paccar Inc. (PCAR) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 15.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, PCAR's intrinsic value is about $149.80 per share.

Is PCAR stock undervalued?

At $110.82 (close on Oct 17, 2026), PCAR trades 26% below its Graham value of $149.80. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Paccar Inc. grown?

Revenue went from $17.0B in fiscal 2016 to $28.4B in fiscal 2025, a compound annual growth rate of 5.9%. Net income was $2.4B in fiscal 2025.

Does Paccar Inc. generate free cash flow?

Paccar Inc. generated $3.7B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is PCAR's return on invested capital?

Average ROIC over the last 10 fiscal years was 19.5%, and average return on equity was 20.7%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this PCAR data come from?

From Paccar Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 29, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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