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Is this Large Market Cap Stock target price reasonable for Penske Automotive Group, Inc. (NYSE:PAG)?

The company in question is, Penske Automotive Group, Inc. (NYSE:PAG) currently with a stock price of 45.01 (0.63% today). The market cap for Penske Automotive Group, Inc. is 3969.79, and is in the sector Services, and Auto Dealerships industry. The target price for Penske Automotive Group, Inc. is 50. Currently Penske Automotive Group, Inc. is trading with a P/E of 11.79, and a forward P/E of 10.59. Average volume for Penske Automotive Group, Inc. is 1010.12 and so far today it is 328003.

Performance in the last year for Penske Automotive Group, Inc. has been -7.14%. For EPS growth, Penske Automotive Group, Inc. has seen a growth of 10.10%, and is looking to grow in the next year to 8.59%. More long term stats show that EPS growth has been 22.30% over the last five years and could be 8.10% for the next five years. Penske Automotive Group, Inc. has seen sales growth quarter over quarter at 6.80%, with EPS growth quarter over quarter at 6.40%. The 20-day simple moving average is -1.69%, with the 200-day simple moving average coming to 18.19%.

Since the IPO date for Penske Automotive Group, Inc. on the 10/23/1996, Penske Automotive Group, Inc. has seen performance year to date to be 8.10%. With Penske Automotive Group, Inc. trading at 45.01, the dividend yield is 2.50%, and the EPS is 3.79.

So could Penske Automotive Group, Inc., be undervalued? Well as said before P/E is 11.79. The PEG is 1.46, P/S is 0.2 and the P/B is at 2.25. The P/cash is 40.72, with P/free cash flow at *TBA.

Penske Automotive Group, Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.3. This is with long term debt/equity at 0.95, and total debt/equity at 2.77.

In terms of margins, Penske Automotive Group, Inc. has a gross margin of 14.70%, an operating margin of 2.90% and a profit margin of 1.70%.Payout ratio for Penske Automotive Group, Inc. is 27.20%. Return on assets come to 4.10% with return on investment coming to 6.30%.

Insider ownership for Penske Automotive Group, Inc., is at 2.00% and institutional ownership comes to 81.00%. Outstanding shares are at 88.75. While shares float is 68.09. The float short is currently 10.19%, and short ratio is 6.87.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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