TacticScaleWhat Paccar Does & How It Makes Money (PCAR)
Updated October 2026 · reflects Paccar's latest reported financials
Global maker of Kenworth, Peterbilt, and DAF commercial trucks. PACCAR earns most of its revenue by selling new trucks and diesel engines through independent dealers.
How Paccar makes money
PACCAR earns most of its revenue by selling new trucks and diesel engines through independent dealers. It also makes money selling aftermarket parts and from interest and lease income on truck financing, leasing, and dealer inventory loans.
What Paccar does
PACCAR Inc is a commercial truck manufacturer founded in 1905 and headquartered in Bellevue, Washington. Its Truck segment designs and builds light, medium, and heavy-duty trucks for on-road and off-highway hauling, along with diesel engines. The trucks are sold through independent dealers under three brands: Kenworth, Peterbilt, and DAF. It sells in the United States, Canada, Mexico, Europe, Australia, Central and South America, and other international markets. The company has two businesses that support truck sales. The Parts segment sells aftermarket parts for trucks and other commercial vehicles. Financial Services provides retail loans and leases to fleets and owner-operators, finances dealer inventory, and runs full-service leasing under the PacLease name. PACCAR also makes industrial winches under the Braden, Carco, and Gearmatic names.
Products & services
- Kenworth trucks
- Peterbilt trucks
- DAF trucks
- PACCAR diesel engines
- PACCAR aftermarket parts
- PacLease full-service leasing
What is Paccar worth?
On an owner-earnings DCF, Paccar's most-likely value is about $98 versus a recent price near $108 (9% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$54) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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