October 22, 2020

Penske Automotive Group, Inc.’s (NYSE:PAG) Intrinsic Value Is Potentially 24% Below Its Share Price

How far off is Penske Automotive Group, Inc. (NYSE:PAG) from its intrinsic value? Using the most recent financial data, we’ll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today’s value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it’s not too difficult to follow, as you’ll see from our example!

Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.

See our latest analysis for Penske Automotive Group

Is Penske Automotive Group fairly valued?

We’re using the 2-stage growth model, which simply means we take in account two stages of company’s growth.

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