Penske Automotive GroupPAG +1.32%86 Interest Coverage is 4.35 as of Mar. 2026, which is 7% below its 10-year median of 4.68. GuruFocus rates PAG with a GF Score™ of 86/100 and a GF Value™ of $167.12 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Penske Automotive Group ranks worse than 61.95% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Penske Automotive Group's
Operating Income
for the
three
months ended in Mar. 2026 was $289 Mil. Penske Automotive Group's Interest Expense for the
three
months ended in Mar. 2026 was $-67 Mil.
Penske Automotive Group's interest coverage for the quarter that ended in Mar. 2026 was 4.35.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Penske Automotive Group's Interest Coverage or its related term are showing as below:
PAG'
s Interest Coverage Range Over the Past 10 Years
Min: 3.13 Med: 4.68 Max: 14.31
Current: 4.74
PAG's Interest Coverage is ranked worse than 61.95% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs PAG: 4.74
Penske Automotive Group (NYSE:PAG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Penske Automotive Group Interest Coverage Related Terms
Penske Automotive Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Penske Automotive Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PAG vs ALTB, KMX, LAD: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's Interest Coverage falls into.
Penske Automotive Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Penske Automotive Group (PAG) has a Interest Coverage of 4.35 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Penske Automotive Group and its competitors. This is near median its historical median of 4.68. Over the past decade, Penske Automotive Group's Interest Coverage has ranged from 3.13 to 14.31. According to the industry distribution chart, Penske Automotive Group ranks #661 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 61.9%.
Is Penske Automotive Group's Interest Coverage too high?
Penske Automotive Group's current Interest Coverage of 4.35 is near median its 10-year median of 4.68. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 14.31. The Vehicles & Parts industry median Interest Coverage is 8.31. Penske Automotive Group's value of 4.35 is 47.7% below this industry median. Based on the distribution chart, Penske Automotive Group ranks #661 out of 1067 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Penske Automotive Group has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's Interest Coverage compare to ALTB and KMX?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #661 out of 1067 companies for Interest Coverage. This places Penske Automotive Group in the lower half of its industry. The industry median Interest Coverage is 8.31. Penske Automotive Group's value of 4.35 is 47.7% below this benchmark. Historically, Penske Automotive Group's own Interest Coverage has ranged from 3.13 to 14.31 over the past decade. While the company's 10-year median is 4.68 vs. the industry median of 8.31, Penske Automotive Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penske Automotive Group's current Interest Coverage of 4.35 is 47.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current Interest Coverage is 4.35, which is near median its own 10-year median of 4.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penske Automotive Group stock overvalued right now?
Based on GuruFocus' analysis, Penske Automotive Group (PAG) is currently considered Fairly Valued. The stock's GF Value™ is $167.12, compared to a current price of $179.42 — trading 7.4% above its estimated fair value. The current Interest Coverage is 4.35, which is near median its 10-year median of 4.68 and 47.7% below the Vehicles & Parts industry median of 8.31. Penske Automotive Group's overall GF Score™ is 86/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Penske Automotive Group (PAG), the current Interest Coverage is 4.35 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penske Automotive Group (PAG) Overvalued in 2026?
Based on GuruFocus' analysis, Penske Automotive Group stock appears to be overvalued.
The current stock price of $179.42 is trading 7.4% above its estimated GF Value™ of $167.12.
GuruFocus considers Penske Automotive Group to be Fairly Valued.
Key valuation signals for PAG:
Interest Coverage: 4.35 (near median its 10-year median of 4.68)
GF Value™: $167.12 vs. price of $179.42 (7.4% above fair value)
Industry Position: 47.7% below the Vehicles & Parts median (#661 of 1067)
No single metric tells the full story. See the PAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penske Automotive Group operates in 19 US states and overseas. It has about 150 US and Puerto Rico light-vehicle stores as well as 217 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan. The company is the third-largest US publicly traded dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 45 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 15 used-vehicle stores, mostly in the US and UK under the CarShop (US) and Sytner Select (UK) brands. Penske is based in Bloomfield Hills, Michigan.
86GF Score
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