HRI Valuation

Herc Holdings Inc

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136.350

-5.7(-4.013%)1D

HRI Relative Valuation

HRI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HRI is overvalued; if below, it's undervalued.

Historical Valuation

Herc Holdings Inc (HRI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 19.05 is considered Overvalued compared with the five-year average of 11.95. The fair price of Herc Holdings Inc (HRI) is between 75.51 to 113.05 according to relative valuation methord. Compared to the current price of 136.35 USD , Herc Holdings Inc is Overvalued By 20.61%.

Relative Value

Fair Zone

75.51-113.05

Current Price：136.35

20.61%

Overvalued

19.05

Trailing

Forward

6.70

EV/EBITDA

Herc Holdings Inc. (HRI) has a current EV/EBITDA of 6.70. The 5-year average EV/EBITDA is 5.49. The thresholds are as follows: Strongly Undervalued below 4.10, Undervalued between 4.10 and 4.80, Fairly Valued between 6.18 and 4.80, Overvalued between 6.18 and 6.88, and Strongly Overvalued above 6.88. The current Forward EV/EBITDA of 6.70 falls within the Overvalued range.

16.55

EV/EBIT

Herc Holdings Inc. (HRI) has a current EV/EBIT of 16.55. The 5-year average EV/EBIT is 11.97. The thresholds are as follows: Strongly Undervalued below 7.79, Undervalued between 7.79 and 9.88, Fairly Valued between 14.06 and 9.88, Overvalued between 14.06 and 16.15, and Strongly Overvalued above 16.15. The current Forward EV/EBIT of 16.55 falls within the Strongly Overvalued range.

142.05

Herc Holdings Inc. (HRI) has a current PS of 142.05. The 5-year average PS is 1.82. The thresholds are as follows: Strongly Undervalued below -15.51, Undervalued between -15.51 and -6.85, Fairly Valued between 10.48 and -6.85, Overvalued between 10.48 and 19.15, and Strongly Overvalued above 19.15. The current Forward PS of 142.05 falls within the Strongly Overvalued range.

3.39

P/OCF

Herc Holdings Inc. (HRI) has a current P/OCF of 3.39. The 5-year average P/OCF is 3.74. The thresholds are as follows: Strongly Undervalued below 1.78, Undervalued between 1.78 and 2.76, Fairly Valued between 4.72 and 2.76, Overvalued between 4.72 and 5.70, and Strongly Overvalued above 5.70. The current Forward P/OCF of 3.39 falls within the Historic Trend Line -Fairly Valued range.

8.99

P/FCF

Herc Holdings Inc. (HRI) has a current P/FCF of 8.99. The 5-year average P/FCF is -24.45. The thresholds are as follows: Strongly Undervalued below -183.75, Undervalued between -183.75 and -104.10, Fairly Valued between 55.20 and -104.10, Overvalued between 55.20 and 134.85, and Strongly Overvalued above 134.85. The current Forward P/FCF of 8.99 falls within the Historic Trend Line -Fairly Valued range.

Herc Holdings Inc (HRI) has a current Price-to-Book (P/B) ratio of 2.44. Compared to its 3-year average P/B ratio of 3.13 , the current P/B ratio is approximately -21.83% higher. Relative to its 5-year average P/B ratio of 3.46, the current P/B ratio is about -29.38% higher. Herc Holdings Inc (HRI) has a Forward Free Cash Flow (FCF) yield of approximately 4.44%. Compared to its 3-year average FCF yield of 0.56%, the current FCF yield is approximately 700.05% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about 30.28% lower.

2.44

P/B

Median3y

3.13

Median5y

3.46

4.44

FCF Yield

Median3y

0.56

Median5y

3.41

Competitors Valuation Multiple

The average P/S ratio for HRI's competitors is 154.81, providing a benchmark for relative valuation. Herc Holdings Inc Corp (HRI) exhibits a P/S ratio of 142.05, which is -8.24% above the industry average. Given its robust revenue growth of 35.13%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Avis Budget Group Inc

Credit Acceptance Corp

Performance Decomposition

Market capitalization of HRI decreased by 41.04% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 965.00M to 1.30B.

The secondary factor is the P/E Change, contributed 5.63%to the performance.

Overall, the performance of HRI in the past 1 year is driven by Revenue Growth. Which is more sustainable.

35.13%

965.00M → 1.30B

Revenue Growth

-81.80%

12.64 → 2.30

Margin Expansion

5.63%

-58.46 → -61.76

P/E Change

-41.04%