DCF Tool


Penske Automotive Group Inc – New Car Dealers
penske automotive group is an international transportation services company that operates automotive and commercial truck dealerships principally in the united states, canada and western europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in australia and new zealand.
Analysis Results
Intrinsic Value $186.91
Latest Price $166.36
Relative Value 11% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 1.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.652 0.611
2024 0.659 0.578
2025 0.665 0.547
2026 0.671 0.517
2027 0.678 0.489
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 14.6 billion. This corresponds to a present value of 9.84 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.74 billion. Adding in the terminal value gives a total present value of 12.6 billion.

There are presently 67.3 million outstanding shares, so the intrinsic value per share is 186.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,664,200,000
Current Cash 106,500,000
Current Liabilities 4,713,100,000
Current Debt 3,071,500,000
Non-Cash Working Capital (NCWC) 2,916,100,000
Change in NCWC 579,300,000
EBIT 1,982,000,000
Tax Provision 473,000,000
Depreciation and Amortization 127,300,000
Capital Expenditure -282,500,000
Unlevered Free Cash Flow 1,901,858,390
Current Assets 4,075,400,000
Current Cash 100,700,000
Current Liabilities 4,274,600,000
Current Debt 2,636,700,000
Non-Cash Working Capital (NCWC) 2,336,800,000
Change in NCWC -579,400,000
EBIT 1,730,900,000
Tax Provision 416,300,000
Depreciation and Amortization 121,500,000
Capital Expenditure -248,900,000
Unlevered Free Cash Flow 575,898,426
Current Assets 4,408,800,000
Current Cash 49,500,000
Current Liabilities 4,674,900,000
Current Debt 3,231,800,000
Non-Cash Working Capital (NCWC) 2,916,200,000
Change in NCWC -1,048,600,000
EBIT 873,500,000
Tax Provision 162,700,000
Depreciation and Amortization 115,500,000
Capital Expenditure -185,900,000
Unlevered Free Cash Flow -446,345,746
Current Assets 5,334,100,000
Current Cash 28,100,000
Current Liabilities 5,451,000,000
Current Debt 4,109,800,000
Non-Cash Working Capital (NCWC) 3,964,800,000
Change in NCWC 74,500,000
EBIT 800,200,000
Tax Provision 156,700,000
Depreciation and Amortization 109,600,000
Capital Expenditure -245,300,000
Unlevered Free Cash Flow 527,011,259
Current Assets 5,095,200,000
Current Cash 39,400,000
Current Liabilities 5,048,300,000
Current Debt 3,882,800,000
Non-Cash Working Capital (NCWC) 3,890,300,000
Change in NCWC 75,300,000
EBIT 799,700,000
Tax Provision 134,300,000
Depreciation and Amortization 103,700,000
Capital Expenditure -305,600,000
Unlevered Free Cash Flow 495,315,345
Current Assets 5,026,500,000
Current Cash 45,700,000
Current Liabilities 5,000,400,000
Current Debt 3,834,600,000
Non-Cash Working Capital (NCWC) 3,815,000,000
Change in NCWC 281,000,000
EBIT 719,000,000
Tax Provision -64,800,000
Depreciation and Amortization 95,100,000
Capital Expenditure -247,000,000
Unlevered Free Cash Flow 848,100,000
Current Assets 4,421,500,000
Current Cash 24,000,000
Current Liabilities 4,229,600,000
Current Debt 3,366,100,000
Non-Cash Working Capital (NCWC) 3,534,000,000
Change in NCWC 66,400,000
EBIT 644,400,000
Tax Provision 160,700,000
Depreciation and Amortization 89,700,000
Capital Expenditure -203,100,000
Unlevered Free Cash Flow 393,591,537
Current Assets 4,408,100,000
Current Cash 62,400,000
Current Liabilities 4,286,900,000
Current Debt 3,408,800,000
Non-Cash Working Capital (NCWC) 3,467,600,000
Change in NCWC 496,800,000
EBIT 605,800,000
Tax Provision 158,000,000
Depreciation and Amortization 78,000,000
Capital Expenditure -199,500,000
Unlevered Free Cash Flow 786,514,921
Current Assets 3,867,700,000
Current Cash 36,300,000
Current Liabilities 3,630,300,000
Current Debt 2,769,700,000
Non-Cash Working Capital (NCWC) 2,970,800,000
Change in NCWC 348,200,000
EBIT 544,900,000
Tax Provision 153,200,000
Depreciation and Amortization 70,000,000
Capital Expenditure -174,800,000
Unlevered Free Cash Flow 607,610,216
Current Assets 3,346,600,000
Current Cash 49,800,000
Current Liabilities 3,331,800,000
Current Debt 2,657,600,000
Non-Cash Working Capital (NCWC) 2,622,600,000
Change in NCWC 442,349,000
EBIT 466,900,000
Tax Provision 124,300,000
Depreciation and Amortization 61,700,000
Capital Expenditure -256,300,000
Unlevered Free Cash Flow 560,052,116
Current Assets 2,773,083,000
Current Cash 43,753,000
Current Liabilities 2,693,556,000
Current Debt 2,144,477,000
Non-Cash Working Capital (NCWC) 2,180,251,000
Change in NCWC 460,740,000
EBIT 392,430,000
Tax Provision 94,330,000
Depreciation and Amortization 53,995,000
Capital Expenditure -161,286,000
Unlevered Free Cash Flow 617,783,986

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.