Federal Signal Corp (FSS) is slightly 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 -16% for FSS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.5% (average of 3 methods) values the shares at $99.88; the price of $115.69 is 16% above that value, and 72% of that value comes from beyond year five.
Leak Score 59/100 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 | FSS | PCAR |
|---|---|---|
| Verdict | Slightly overvalued | Slightly undervalued |
| Price | $115.69 | $113.90 |
| Intrinsic value | $99.88 | $121.43 |
| Margin of safety | -16% | +6% |
| Leak Score | 59/100 (3/12) | 56/100 (9/12) |
| Market cap | $7.1B | $60.0B |
| Revenue growth, 5 years | 14.0% | 8.7% |
| Operating margin | 16.8% | 10.4% |
| Net margin | 11.7% | 9.0% |
| Return on equity | 20.6% | 12.8% |
| Debt to equity | 0.32 | 0.72 |
| P/E | 24.9x | 24.0x |
| Forward P/E | 20.0x | 15.8x |
| P/B | 4.7x | 3.0x |
| Dividend yield | 0.5% | 2.9% |