AGCO Corp (AGCO) is overvalued and Paccar Inc (PCAR) is slightly undervalued.
Against our estimates of intrinsic value, PCAR trades at the wider discount: a margin of safety of +6%, against -42% for AGCO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $85.17; the price of $120.65 is 42% above that value, and 76% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $121.43; the price of $113.90 is 6% below that value, and 76% of that value comes from beyond year five.
Leak Score 56/100 on 9 of 12 signals
| Metric | AGCO | PCAR |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $120.65 | $113.90 |
| Intrinsic value | $85.17 | $121.43 |
| Margin of safety | -42% | +6% |
| Leak Score | 27/100 (3/12) | 56/100 (9/12) |
| Market cap | $8.4B | $60.0B |
| Revenue growth, 5 years | 2.0% | 8.7% |
| Operating margin | 6.6% | 10.4% |
| Net margin | 5.2% | 9.0% |
| Return on equity | 12.9% | 12.8% |
| Debt to equity | 0.70 | 0.72 |
| P/E | 16.7x | 24.0x |
| Forward P/E | 16.5x | 15.8x |
| P/B | 2.1x | 3.0x |
| Dividend yield | 1.0% | 2.9% |