Penske Automotive Group (Penske Automotive Group) GF Value Rank : 5 (As of Apr. 27, 2024)

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What is Penske Automotive Group GF Value Rank?

Penske Automotive Group has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Penske Automotive Group's GF Value Rank

For the Auto & Truck Dealerships subindustry, Penske Automotive Group's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Penske Automotive Group's GF Value Rank Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Penske Automotive Group's GF Value Rank falls into.

Penske Automotive Group GF Value Rank Related Terms

Thank you for viewing the detailed overview of Penske Automotive Group's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Penske Automotive Group (Penske Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Penske Automotive Group Inc (NYSE:PAG) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

UA9:Germany

Address

2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954

Website

https://www.penskeautomotive.com

Penske Automotive Group operates in about 20 U.S. states and overseas. It has about 150 U.S. light-vehicle stores including in Puerto Rico as well as 189 franchised dealerships overseas, primarily in the United Kingdom. The company is the second-largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 44 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 20 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.

Executives

Sandra E. Pierce	director	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr	director, officer: President	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
John Barr	director	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
Michelle Hulgrave	officer: EVP & CFO	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Shane M. Spradlin	officer: EVP, Gen. Counsel & Sec.	2555 TELEGRAPH RD., BLOOMFIELD HILLS MI 48302
Kimberly J Mcwaters	director	20410 NORTH 19TH AVENUE, PHOENIX AZ 85027
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Greg C Smith	director	FORD MOTOR COMPANY, 21175 OAKWOOD BLVD, DEARBORN MI 48124
Denker Claude H Iii	officer: EVP - Human Resources	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Roger S Penske	director, 10 percent owner, officer: Chair & CEO	2555 TELEGRAPH ROAD, BLOOMFIELD HILLS MI 48302-0954
H Brian Thompson	director	1950 OLD GALLOWS ROAD SUITE 201, VIENNA VA 22182
Ronald G Steinhart	director	3890 WEST NORTHWEST HIGHWAY SUITE 400, DALLAS TX 75220
Michael R Eisenson	director	C/O CHARLESBANK CAPITAL PARTNERS, 600 ATLANTIC AV 28TH FL, BOSTON MA 02210
Gregory W Penske	director	3534 NORTH PECK ROAD, EL MONTE CA 91731
Wolfgang Duerheimer	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302