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Penske Automotive GroupPAG -1.50%85 5-Year Yield-on-Cost % is 13.91 as of Aug. 05, 2026, which is 4% above its 10-year median of 13.37. GuruFocus rates PAG with a GF Score™ of 85/100 and a GF Value™ of $170.87 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 857 Vehicles & Parts companies, Penske Automotive Group ranks better than 88.45% on this metric.
Penske Automotive Group (NYSE:PAG) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Penske Automotive Group 5-Year Yield-on-Cost % Related Terms
PAG vs KMX, ALTB, LAD: 5-Year Yield-on-Cost % Comparison
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's 5-Year Yield-on-Cost % falls into.
Penske Automotive Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Penske Automotive Group (PAG) has a 5-Year Yield-on-Cost % of 13.91 as of Aug. 05, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Penske Automotive Group and its competitors. This is near median its historical median of 13.37. Over the past decade, Penske Automotive Group's 5-Year Yield-on-Cost % has ranged from 5.02 to 39.01. According to the industry distribution chart, Penske Automotive Group ranks #99 out of 857 companies in the Vehicles & Parts industry, placing it in the top 11.6%.
Is Penske Automotive Group's 5-Year Yield-on-Cost % too high?
Penske Automotive Group's current 5-Year Yield-on-Cost % of 13.91 is near median its 10-year median of 13.37. Over the past 10 years, this metric has ranged from a low of 5.02 to a high of 39.01. The Vehicles & Parts industry median 5-Year Yield-on-Cost % is 3.11. Penske Automotive Group's value of 13.91 is 347.3% above this industry median. Based on the distribution chart, Penske Automotive Group ranks #99 out of 857 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Penske Automotive Group has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's 5-Year Yield-on-Cost % compare to KMX and ALTB?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #99 out of 857 companies for 5-Year Yield-on-Cost %. This places Penske Automotive Group in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.11. Penske Automotive Group's value of 13.91 is 347.3% above this benchmark. Historically, Penske Automotive Group's own 5-Year Yield-on-Cost % has ranged from 5.02 to 39.01 over the past decade. While the company's 10-year median is 13.37 vs. the industry median of 3.11, Penske Automotive Group has consistently been above 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 5-Year Yield-on-Cost % for a Vehicles & Parts company?
The median 5-Year Yield-on-Cost % among Vehicles & Parts companies is 3.11, based on 857 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penske Automotive Group's current 5-Year Yield-on-Cost % of 13.91 is 347.3% above 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median 5-Year Yield-on-Cost % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current 5-Year Yield-on-Cost % is 13.91, which is near median its own 10-year median of 13.37. 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 Modestly Overvalued. The stock's GF Value™ is $170.87, compared to a current price of $215.76 — trading 26.3% above its estimated fair value. The current 5-Year Yield-on-Cost % is 13.91, which is near median its 10-year median of 13.37 and 347.3% above the Vehicles & Parts industry median of 3.11. Penske Automotive Group's overall GF Score™ is 85/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Penske Automotive Group (PAG), the current 5-Year Yield-on-Cost % is 13.91 as of Aug. 05, 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 $215.76 is trading 26.3% above its estimated GF Value™ of $170.87.
GuruFocus considers Penske Automotive Group to be Modestly Overvalued.
Key valuation signals for PAG:
5-Year Yield-on-Cost %: 13.91 (near median its 10-year median of 13.37)
GF Value™: $170.87 vs. price of $215.76 (26.3% above fair value)
Industry Position: 347.3% above the Vehicles & Parts median (#99 of 857)
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.
85GF Score
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