Latest Ratios: P/E Ratio 14.8x · EV/EBITDA 15.5x · ROE 17.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.8B | $10.5B | $10.2B | $10.9B | $8.6B | $8.6B | $4.8B | $4.1B | $3.4B | $4.1B | $4.5B |
| Enterprise Value | $22.5B | $19.2B | $18.4B | $18.6B | $15.4B | $14.9B | $11.9B | $12.8B | $9.4B | $10.0B | $9.6B |
| P/E Ratio → | 14.84 | 11.20 | 10.52 | 10.36 | 6.20 | 7.20 | 8.81 | 9.51 | 7.29 | 6.70 | 12.99 |
| P/S Ratio | 0.43 | 0.33 | 0.32 | 0.35 | 0.31 | 0.33 | 0.23 | 0.18 | 0.15 | 0.19 | 0.22 |
| P/B Ratio | 2.49 | 1.88 | 1.95 | 2.30 | 2.05 | 2.09 | 1.44 | 1.47 | 1.30 | 1.69 | 2.51 |
| P/FCF | 18.62 | 14.16 | 12.57 | 15.20 | 7.27 | 8.19 | 4.71 | 15.16 | 11.11 | 10.91 | 26.26 |
| P/OCF | 12.95 | 9.84 | 8.64 | 9.98 | 5.86 | 6.61 | 3.98 | 7.99 | 5.59 | 6.59 | 11.96 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.60 | 0.58 | 0.60 | 0.55 | 0.58 | 0.58 | 0.55 | 0.41 | 0.47 | 0.48 |
| EV / EBITDA | 15.51 | 13.24 | 12.01 | 11.64 | 9.53 | 10.05 | 14.54 | 16.77 | 12.23 | 14.14 | 14.49 |
| EV / EBIT | 17.60 | 12.61 | 11.71 | 10.90 | 7.77 | 8.72 | 13.78 | 15.97 | 11.76 | 13.89 | 14.94 |
| EV / FCF | — | 25.99 | 22.68 | 25.83 | 13.09 | 14.22 | 11.73 | 46.77 | 30.42 | 26.53 | 56.71 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.4% | 16.4% | 16.4% | 16.6% | 17.4% | 17.4% | 15.6% | 14.9% | 15.0% | 15.1% | 14.7% |
| Operating Margin | 4.0% | 4.0% | 4.3% | 4.7% | 5.3% | 5.3% | 3.4% | 2.8% | 2.9% | 2.9% | 2.9% |
| Net Profit Margin | 2.9% | 2.9% | 3.0% | 3.6% | 5.0% | 4.6% | 2.7% | 1.9% | 2.1% | 2.9% | 1.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.3% | 17.3% | 19.4% | 24.8% | 33.4% | 32.0% | 17.7% | 16.0% | 18.6% | 29.2% | 19.0% |
| ROA | 5.3% | 5.3% | 6.0% | 7.4% | 10.0% | 8.9% | 4.0% | 3.5% | 4.4% | 6.3% | 4.1% |
| ROIC | 6.9% | 6.9% | 8.0% | 9.3% | 10.4% | 9.8% | 4.8% | 4.9% | 5.9% | 6.0% | 6.4% |
| ROCE | 11.5% | 11.5% | 13.5% | 14.9% | 16.0% | 15.3% | 8.3% | 9.1% | 11.7% | 12.0% | 13.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.58 | 1.58 | 1.58 | 1.63 | 1.67 | 1.56 | 2.16 | 3.08 | 2.28 | 2.44 | 2.92 |
| Debt / EBITDA | 6.07 | 6.07 | 5.40 | 4.85 | 4.31 | 4.33 | 8.76 | 11.37 | 7.82 | 8.39 | 7.82 |
| Net Debt / Equity | — | 1.57 | 1.57 | 1.61 | 1.64 | 1.54 | 2.15 | 3.07 | 2.27 | 2.42 | 2.91 |
| Net Debt / EBITDA | 6.03 | 6.03 | 5.35 | 4.79 | 4.24 | 4.26 | 8.70 | 11.33 | 7.76 | 8.32 | 7.78 |
| Debt / FCF | — | 11.83 | 10.11 | 10.64 | 5.82 | 6.03 | 7.02 | 31.61 | 19.31 | 15.62 | 30.45 |
| Interest Coverage | 5.82 | 5.82 | 17.89 | 7.47 | 16.14 | 17.96 | 5.50 | 3.83 | 4.09 | 4.21 | 4.73 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.99 | 0.99 | 0.91 | 1.00 | 0.99 | 0.95 | 0.94 | 0.98 | 1.01 | 1.01 | 1.05 |
| Quick Ratio | 0.22 | 0.22 | 0.20 | 0.25 | 0.25 | 0.22 | 0.21 | 0.20 | 0.21 | 0.22 | 0.24 |
| Cash Ratio | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Asset Turnover | — | 1.73 | 1.91 | 1.97 | 1.97 | 1.90 | 1.54 | 1.66 | 2.09 | 2.03 | 2.27 |
| Inventory Turnover | 5.52 | 5.52 | 5.74 | 6.00 | 6.55 | 6.75 | 5.04 | 4.63 | 4.79 | 4.61 | 5.03 |
| Days Sales Outstanding | — | 12.28 | 11.48 | 13.16 | 11.90 | 10.48 | 14.41 | 15.12 | 14.88 | 16.30 | 15.95 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 3.3% | 2.7% | 1.7% | 1.8% | 1.7% | 1.4% | 3.2% | 3.5% | 2.6% | 2.1% |
| Payout Ratio | 36.8% | 36.8% | 28.3% | 17.1% | 11.2% | 12.0% | 12.5% | 30.0% | 25.7% | 17.7% | 27.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 8.9% | 9.5% | 9.7% | 16.1% | 13.9% | 11.3% | 10.5% | 13.7% | 14.9% | 7.7% |
| FCF Yield | 5.4% | 7.1% | 8.0% | 6.6% | 13.8% | 12.2% | 21.2% | 6.6% | 9.0% | 9.2% | 3.8% |
| Buyback Yield | 1.2% | 1.5% | 0.6% | 3.3% | 10.2% | 3.3% | 0.6% | 4.1% | 2.0% | 0.5% | 3.9% |
| Total Shareholder Yield | 3.6% | 4.8% | 3.3% | 5.0% | 12.0% | 4.9% | 2.0% | 7.2% | 5.5% | 3.1% | 6.0% |
| Shares Outstanding | — | $66M | $67M | $68M | $74M | $80M | $81M | $82M | $85M | $86M | $86M |
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Quick answers to the most common questions about buying PAG stock.
Penske Automotive Group, Inc.'s current P/E ratio is 14.8x. The historical average is 19.1x. This places it at the 74th percentile of its historical range.
Penske Automotive Group, Inc.'s current EV/EBITDA is 15.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Penske Automotive Group, Inc.'s return on equity (ROE) is 17.3%. The historical average is 12.6%.
Based on historical data, Penske Automotive Group, Inc. is trading at a P/E of 14.8x. This is at the 74th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Penske Automotive Group, Inc.'s current dividend yield is 2.48% with a payout ratio of 36.8%.
Penske Automotive Group, Inc. has 16.4% gross margin and 4.0% operating margin.
Penske Automotive Group, Inc.'s Debt/EBITDA ratio is 6.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated debt and margin pressure
Metrics are mathematically derived from official filings.
Margin Compression Amid Normalization
Gross margin slipped to 15.9% in Q2 2026 from 16.9% a year earlier, while operating margin contracted to 4.0% from 4.5%, according to recent financial statements, signaling ongoing pricing normalization.
The sequential stability in gross margin (15.9% in Q2 2026 vs. 15.9% in Q4 2025) suggests the sharpest compression may be behind, but the year-over-year decline reflects the return of promotional activity as vehicle supply recovers. Operating margin at 4.0% remains thin, underscoring the high-volume, low-margin nature of dealership operations. Net margin of 3.1% benefited from a lower effective tax rate and share repurchases, which may not be repeatable; investors should monitor whether core operating leverage can stabilize without these tailwinds.
ROIC Stuck in Low Single Digits
ROIC has hovered between 1.5% and 2.0% over the past ten quarters, with Q2 2026 at 1.7%, as reported in financial statements, indicating limited incremental returns on the expanded capital base.
Despite a 17.3% ROE, the gap between ROE and ROIC highlights the significant leverage employed; ROIC of 1.7% is barely above the cost of capital, suggesting that acquisitions and organic growth are not generating substantial economic returns. The stability of ROIC around 1.8-2.0% over the period implies that margin compression has offset efficiency gains. Investors should assess whether the PTS equity stake, which is not consolidated, provides returns that are not captured in this metric, potentially understating true capital productivity.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle extended to 63 days in Q2 2026 from 64 days a year earlier, driven by DIO of 64 days, according to company filings, reflecting higher inventory levels as supply normalizes.
DSO remains low at 11 days, typical for dealerships with immediate payment upon sale, while DPO of 12 days indicates limited supplier financing leverage. The inventory build (DIO up from 58 days in Q4 2025 to 64 days in Q2 2026) ties up cash and increases floorplan interest exposure, a key variable cost in a high-rate environment. Asset turnover of 0.46x is stable but low, reflecting the capital-intensive nature of the business; efficiency gains would require faster inventory turns or a shift toward higher-margin service revenue.
Debt Burden Elevated but Serviceable
Debt-to-equity of 1.59 in Q2 2026, with interest coverage of 5.94x, as reported in financial statements, indicates manageable leverage, though D/EBITDA of 24.15x appears distorted by equity-method accounting.
The reported D/EBITDA of 24.15x is unusually high and likely understates EBITDA because PTS is not consolidated; investors should adjust for this to compare with peers like AutoNation (D/E 4.35) and Lithia (2.22). Interest coverage of 5.94x provides a comfortable cushion, but it has declined from 6.27x in Q1 2025, reflecting higher rates and margin pressure. The spike in D/E to 1.59 in Q2 2026 from 0.69 in Q3 2025 suggests a significant debt-funded acquisition or seasonal inventory build; monitoring refinancing needs and covenant headroom is prudent.
Liquidity Tight but Stable
Current ratio of 0.98 and quick ratio of 0.21 in Q2 2026, based on reported figures, indicate reliance on short-term borrowings and operating cash flow to meet obligations, typical for dealerships.
The sub-1.0 current ratio is common in the auto retail industry due to floorplan financing, but the quick ratio of 0.21 highlights heavy inventory dependence; a sharp decline in used-vehicle values could strain liquidity. Cash of $69.5M against $9.3B debt underscores the need for continuous access to credit markets. While the company has maintained positive free cash flow, the volatility in working capital (swings of over $200M) suggests that liquidity could tighten quickly if inventory turns slow or credit conditions worsen.
Misapplied ROE in a Leveraged Model
ROE of 17.3% appears strong but is inflated by leverage; ROIC of 1.7% reveals the true economic return, as reported in financial statements, making ROE a misleading metric for PAG.
In capital-intensive dealerships, ROE can be artificially boosted by debt financing, as seen with PAG's D/E of 1.59. The more relevant metric is ROIC, which at 1.7% suggests value creation is minimal on a consolidated basis. However, ROIC may understate the returns from the PTS equity stake, which is not consolidated; investors should adjust ROIC to include the proportional earnings from PTS to get a clearer picture of capital efficiency. Using ROE alone would overstate the quality of earnings and the sustainability of returns.