HRI PE Ratio & Valuation,Is HRI Overvalued

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 20.37 is considered Overvalued compared with the five-year average of 11.92. The fair price of Herc Holdings Inc (HRI) is between 80.99 to 119.80 according to relative valuation methord. Compared to the current price of 154.49 USD , Herc Holdings Inc is Overvalued By 28.96%.

Relative Value

Fair Zone

80.99-119.80

Current Price：154.49

28.96%

Overvalued

20.37

6.96

EV/EBITDA

Herc Holdings Inc. (HRI) has a current EV/EBITDA of 6.96. The 5-year average EV/EBITDA is 5.53. The thresholds are as follows: Strongly Undervalued below 4.09, Undervalued between 4.09 and 4.81, Fairly Valued between 6.24 and 4.81, Overvalued between 6.24 and 6.96, and Strongly Overvalued above 6.96. The current Forward EV/EBITDA of 6.96 falls within the Overvalued range.

17.06

EV/EBIT

Herc Holdings Inc. (HRI) has a current EV/EBIT of 17.06. The 5-year average EV/EBIT is 11.95. The thresholds are as follows: Strongly Undervalued below 8.08, Undervalued between 8.08 and 10.02, Fairly Valued between 13.88 and 10.02, Overvalued between 13.88 and 15.82, and Strongly Overvalued above 15.82. The current Forward EV/EBIT of 17.06 falls within the Strongly Overvalued range.

1.04

Herc Holdings Inc. (HRI) has a current PS of 1.04. The 5-year average PS is 1.26. The thresholds are as follows: Strongly Undervalued below 0.56, Undervalued between 0.56 and 0.91, Fairly Valued between 1.61 and 0.91, Overvalued between 1.61 and 1.96, and Strongly Overvalued above 1.96. The current Forward PS of 1.04 falls within the Historic Trend Line -Fairly Valued range.

3.73

P/OCF

Herc Holdings Inc. (HRI) has a current P/OCF of 3.73. The 5-year average P/OCF is 3.74. The thresholds are as follows: Strongly Undervalued below 1.81, Undervalued between 1.81 and 2.77, Fairly Valued between 4.71 and 2.77, Overvalued between 4.71 and 5.67, and Strongly Overvalued above 5.67. The current Forward P/OCF of 3.73 falls within the Historic Trend Line -Fairly Valued range.

9.05

P/FCF

Herc Holdings Inc. (HRI) has a current P/FCF of 9.05. The 5-year average P/FCF is -24.08. The thresholds are as follows: Strongly Undervalued below -182.56, Undervalued between -182.56 and -103.32, Fairly Valued between 55.17 and -103.32, Overvalued between 55.17 and 134.41, and Strongly Overvalued above 134.41. The current Forward P/FCF of 9.05 falls within the Historic Trend Line -Fairly Valued range.

Herc Holdings Inc (HRI) has a current Price-to-Book (P/B) ratio of 2.66. Compared to its 3-year average P/B ratio of 3.08 , the current P/B ratio is approximately -13.56% higher. Relative to its 5-year average P/B ratio of 3.46, the current P/B ratio is about -23.02% higher. Herc Holdings Inc (HRI) has a Forward Free Cash Flow (FCF) yield of approximately 4.09%. Compared to its 3-year average FCF yield of 1.08%, the current FCF yield is approximately 279.76% lower. Relative to its 5-year average FCF yield of 3.16% , the current FCF yield is about 29.28% lower.

2.66

P/B

Median3y

3.08

Median5y

3.46

4.09

FCF Yield

Median3y

1.08

Median5y

3.16

Competitors Valuation Multiple

The average P/S ratio for HRI's competitors is 2.38, providing a benchmark for relative valuation. Herc Holdings Inc Corp (HRI) exhibits a P/S ratio of 1.04, which is -56.4% above the industry average. Given its robust revenue growth of 35.13%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HRI decreased by 18.40% 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 28.27%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

28.27%

-52.45 → -67.28

P/E Change

-18.40%

189.33 → 154.49

Mkt Cap Growth

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Frequently Asked Questions

Is Herc Holdings Inc (HRI) currently overvalued or undervalued?

What is Herc Holdings Inc (HRI) fair value?

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. The fair price of Herc Holdings Inc (HRI) is between 80.99 to 119.80 according to relative valuation methord.

How does HRI's valuation metrics compare to the industry average?

The average P/S ratio for HRI's competitors is 2.38, providing a benchmark for relative valuation. Herc Holdings Inc Corp (HRI) exhibits a P/S ratio of 1.04, which is -56.40% above the industry average. Given its robust revenue growth of 35.13%, this premium appears sustainable.

What is the current P/B ratio for Herc Holdings Inc (HRI) as of Dec 16 2025?

As of Dec 16 2025, Herc Holdings Inc (HRI) has a P/B ratio of 2.66. This indicates that the market values HRI at 2.66 times its book value.

What is the current FCF Yield for Herc Holdings Inc (HRI) as of Dec 16 2025?

As of Dec 16 2025, Herc Holdings Inc (HRI) has a FCF Yield of 4.09%. This means that for every dollar of Herc Holdings Inc’s market capitalization, the company generates 4.09 cents in free cash flow.

What is the current Forward P/E ratio for Herc Holdings Inc (HRI) as of Dec 16 2025?

As of Dec 16 2025, Herc Holdings Inc (HRI) has a Forward P/E ratio of 20.37. This means the market is willing to pay $20.37 for every dollar of Herc Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Herc Holdings Inc (HRI) as of Dec 16 2025?

As of Dec 16 2025, Herc Holdings Inc (HRI) has a Forward P/S ratio of 1.04. This means the market is valuing HRI at $1.04 for every dollar of expected revenue over the next 12 months.

HRI Valuation