PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	28,819.7	35,127.4	33,663.8	26,418.8	27,575.1	30,895.7	30,895.7	30,895.7
Revenue % Chg.	22.5%	21.9%	-4.2%
EBIT	3,779.2	6,043.1	4,992.5	2,470.6	2,984.4	3,950.9	3,950.9	3,950.9
EBIT Margin	13.1%	17.2%	14.8%
Tax Rate	21.8%	19.5%	22.9%
NOPAT	2,957.2	4,862.2	3,847.3	1,925.5	2,318.4	3,064.6	3,064.6	3,064.6
NOPAT Margin	10.3%	13.8%	11.4%	7.3%	8.4%	9.9%	9.9%	9.9%
D&A	790.2	435.3	372.2	405	444.3	456.8	456.8	456.8
D&A / Revenue	2.7%	1.2%	1.1%
Capex	-1,390.5	-1,262.5	-1,745.6	-726	-737.3	-725.8	-725.8	-725.8
Capex / Revenue	-4.8%	-3.6%	-5.2%
Chg. NWC	-547.1	-1,081.5	-419.8	-548.1	-572.1	-641	-641	-641
Chg. NWC / Revenue	-1.9%	-3.1%	-1.2%
Unlevered FCF (UFCF)	1,809.8	2,953.5	2,054.1	1,056.3	1,453.3	2,154.5	2,154.5	2,154.5
UFCF % Chg.	138.3%	63.2%	-30.5%	-48.6%	37.6%	48.2%	—	—
PV of UFCF	—	—	—	989.3	1,274.8	1,770	1,657.7	1,552.6
Sum of PV of UFCF	—	—	—	989.3	2,264.1	4,034.1	5,691.8	7,244.4

Cost of Debt
Tax Rate
After Tax Cost of Debt	0.2%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	16,009.2
Market Cap	55,613.9
Total Capital	71,623.1
Debt Weighting	22.4%
Equity Weighting	77.6%
WACC	6.8%

Exit Multiple EV/FCF
Terminal Value	62,515.2
PV of Terminal Value	42,191.2
Cumulative PV of UFCF	7,244.4
Net Debt	6,901.3
Equity Value	42,534.2
Shares Outstanding	525.2
Implied Share Price	81
Current Share Price	105.9
Implied Upside / (Downside)	-23.5%