Is PACCAR, Inc. overvalued or undervalued?

As of 22 July 2025, the valuation grade for PACCAR, Inc. moved from expensive to fair, indicating a more favorable assessment of its stock price relative to its fundamentals. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.20, and a Price to Book Value of 2.72, which suggest that the stock is reasonably priced compared to its earnings and asset values.
In comparison to peers, PACCAR's P/E ratio of 14 is significantly lower than Caterpillar, Inc. at 32.72 and Deere & Co. at 44.92, both of which are classified as expensive. Additionally, Cummins, Inc. is also rated fair with a P/E of 28.99, further supporting the notion that PACCAR is positioned more attractively within its industry. Although specific return data is not available, the absence of negative performance relative to the S&P 500 could imply that PACCAR is maintaining a competitive stance in the market.