Penske Automotive Intrinsic Value – Penske Automotive Group Projected Fair Value Estimated at US$162 in 2023.

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The recently published report from GlobalData on Penske Automotive ($NYSE:PAG) Group, Inc. projects the company’s fair value at US$162 in 2023. This estimate was determined using a 2 Stage Free Cash Flow to Equity Model. This model takes into account the outlook of the company in terms of sales, operating and financial performance, and also considers the level of risk associated with the company and its current stock price. The report also provides key insights into the company’s key drivers, risks and valuation. In terms of drivers, the report highlights Penske Automotive Group’s strong market presence in the US, its diversified product portfolio, and its strong relationships with key suppliers.

In terms of risks, the report highlights the potential for pricing pressures in the automotive industry and the competition from new market entrants. The valuation of the company is based on the estimated future cash flows and discount rate. This projection is based on a thorough analysis of the company’s financials and market position, as well as an assessment of the risks associated with investing in the company.

Price History

PENSKE AUTOMOTIVE Group’s projected fair value estimate for 2023 is US$162, and news coverage of the company has been mostly positive. On Monday, PENSKE AUTOMOTIVE stock opened at $134.7 and closed at $134.4, a rise of 1.2% from its previous closing price of 132.8. This may indicate that investors are bullish on the company’s outlook for the future. The company’s current performance combined with its projected value should give investors confidence in their investment. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Penske Automotive. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Penske Automotive. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Penske Automotive. More…

Key Ratios Snapshot

Some of the financial key ratios for Penske Automotive are shown below. More…

Analysis – Penske Automotive Intrinsic Value

At GoodWhale, we conducted an analysis of PENSKE AUTOMOTIVE‘s wellbeing. Our proprietary Valuation Line showed that the intrinsic value of PENSKE AUTOMOTIVE share is around $108.7. However, currently the stock is traded at $134.4, which is overvalued by 23.7%. This indicates that PENSKE AUTOMOTIVE’s stock is not a good purchase right now and investors should not buy it. This means that the risk of investing in PENSKE AUTOMOTIVE at this time is too high to justify the potential return. More…

Peers

Penske Automotive Group Inc is an American automotive retailer. It is the second largest publicly traded company in the United States behind AutoNation and is headquartered in Bloomfield Hills, Michigan. The company also owns and operates several automotive websites and a truck leasing and logistics company. Penske Automotive Group operates over 300 retail automotive franchises, representing over 40 different brands. The company also operates in the United Kingdom, Australia, and Mexico. Sonic Automotive Inc is an American automotive retailer.Headquartered in Charlotte, North Carolina, the company operates over 100 dealerships in 15 states. Asbury Automotive Group Inc is an American automotive retailer. As of 2016, Asbury Automotive Group operated 86 dealerships, made up of 77 franchises across the United States. Group 1 Automotive Inc is an American automotive retailer with its headquarters in Houston, Texas. As of 2016, Group 1 Automotive operated 175 dealerships and 153 franchises in the United States and United Kingdom.

– Sonic Automotive Inc ($NYSE:SAH)

Sonic Automotive Inc is a company that operates in the automotive retailing industry. As of 2022, it had a market capitalization of 1.77 billion dollars and a return on equity of 32.11%. Sonic Automotive Inc is a company that operates in the automotive retailing industry. It is based in Charlotte, North Carolina, and was founded in 1997. The company operates dealerships in the United States, and its brands include Audi, BMW, Cadillac, Chevrolet, Jaguar, Land Rover, Lexus, Mercedes-Benz, Porsche, and Volvo.

– Asbury Automotive Group Inc ($NYSE:ABG)

Asbury Automotive Group Inc is one of the largest automotive retailers in the United States. The company operates over 100 dealerships across the country, selling and servicing a variety of makes and models of cars and light trucks. Asbury’s return on equity is impressive, coming in at over 31%. This means that the company is generating a significant amount of profit relative to the amount of equity that shareholders have invested. Asbury’s market cap is just over $3.7 billion, making it a large company but still small enough to be considered nimble in the ever-changing automotive industry.

– Group 1 Automotive Inc ($NYSE:GPI)

Group 1 Automotive Inc is a publicly traded automotive retailer that offers new and used vehicles, parts and services, and financing options through its dealerships. As of 2022, the company had a market capitalization of 2.6 billion dollars and a return on equity of 33.54%. Group 1 Automotive Inc operates in the United States, the United Kingdom, Brazil, and Turkey. The company was founded in 1995 and is headquartered in Houston, Texas.

Summary

Penske Automotive Group is a leading automotive retailer and services provider in the United States. Recent analysis on investing in the company has been mostly positive. According to projections, the company’s fair value is estimated to be US$162 in 2023.

Many analysts are optimistic on the prospects of the company due to its strong customer demand, well-established presence in the industry, and increased availability of innovative products and services that are driving growth. While risks remain with the stock, investors should consider the potential rewards of investing in Penske Automotive Group, particularly as its fair value is expected to increase.