MGRC PE Ratio & Valuation,Is MGRC Overvalued

MGRC Relative Valuation

MGRC'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, MGRC is overvalued; if below, it's undervalued.

Historical Valuation

McGrath RentCorp (MGRC) is now in the Fair zone, suggesting that its current forward PE ratio of 16.60 is considered Fairly compared with the five-year average of 19.40. The fair price of McGrath RentCorp (MGRC) is between 106.48 to 128.80 according to relative valuation methord.

Relative Value

Fair Zone

106.48-128.80

Current Price：108.00

Fair

16.60

8.71

EV/EBITDA

McGrath RentCorp. (MGRC) has a current EV/EBITDA of 8.71. The 5-year average EV/EBITDA is 9.40. The thresholds are as follows: Strongly Undervalued below 7.79, Undervalued between 7.79 and 8.59, Fairly Valued between 10.21 and 8.59, Overvalued between 10.21 and 11.02, and Strongly Overvalued above 11.02. The current Forward EV/EBITDA of 8.71 falls within the Historic Trend Line -Fairly Valued range.

12.80

EV/EBIT

McGrath RentCorp. (MGRC) has a current EV/EBIT of 12.80. The 5-year average EV/EBIT is 14.83. The thresholds are as follows: Strongly Undervalued below 12.31, Undervalued between 12.31 and 13.57, Fairly Valued between 16.08 and 13.57, Overvalued between 16.08 and 17.34, and Strongly Overvalued above 17.34. The current Forward EV/EBIT of 12.80 falls within the Undervalued range.

2.71

McGrath RentCorp. (MGRC) has a current PS of 2.71. The 5-year average PS is 2.95. The thresholds are as follows: Strongly Undervalued below 2.47, Undervalued between 2.47 and 2.71, Fairly Valued between 3.20 and 2.71, Overvalued between 3.20 and 3.44, and Strongly Overvalued above 3.44. The current Forward PS of 2.71 falls within the Undervalued range.

10.75

P/OCF

McGrath RentCorp. (MGRC) has a current P/OCF of 10.75. The 5-year average P/OCF is 12.67. The thresholds are as follows: Strongly Undervalued below 7.56, Undervalued between 7.56 and 10.12, Fairly Valued between 15.23 and 10.12, Overvalued between 15.23 and 17.79, and Strongly Overvalued above 17.79. The current Forward P/OCF of 10.75 falls within the Historic Trend Line -Fairly Valued range.

13.14

P/FCF

McGrath RentCorp. (MGRC) has a current P/FCF of 13.14. The 5-year average P/FCF is 26.90. The thresholds are as follows: Strongly Undervalued below -1.22, Undervalued between -1.22 and 12.84, Fairly Valued between 40.96 and 12.84, Overvalued between 40.96 and 55.02, and Strongly Overvalued above 55.02. The current Forward P/FCF of 13.14 falls within the Historic Trend Line -Fairly Valued range.

McGrath RentCorp (MGRC) has a current Price-to-Book (P/B) ratio of 2.20. Compared to its 3-year average P/B ratio of 2.71 , the current P/B ratio is approximately -18.76% higher. Relative to its 5-year average P/B ratio of 2.70, the current P/B ratio is about -18.71% higher. McGrath RentCorp (MGRC) has a Forward Free Cash Flow (FCF) yield of approximately 5.16%. Compared to its 3-year average FCF yield of 2.01%, the current FCF yield is approximately 156.12% lower. Relative to its 5-year average FCF yield of 3.76% , the current FCF yield is about 37.30% lower.

2.20

P/B

Median3y

2.71

Median5y

2.70

5.16

FCF Yield

Median3y

2.01

Median5y

3.76

Competitors Valuation Multiple

The average P/S ratio for MGRC's competitors is 3.11, providing a benchmark for relative valuation. McGrath RentCorp Corp (MGRC) exhibits a P/S ratio of 2.71, which is -13.14% above the industry average. Given its robust revenue growth of -3.87%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MGRC decreased by 4.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.66 to 18.11.

The secondary factor is the Revenue Growth, contributed -3.87%to the performance.

Overall, the performance of MGRC in the past 1 year is driven by P/E Change. Which is more unsustainable.

-3.87%

266.76M → 256.44M

Revenue Growth

-70.54%

55.97 → 16.49

Margin Expansion

69.89%

10.66 → 18.11

P/E Change

-4.52%

111.82 → 106.77

Mkt Cap Growth

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Frequently Asked Questions

Is McGrath RentCorp (MGRC) currently overvalued or undervalued?

What is McGrath RentCorp (MGRC) fair value?

MGRC'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 McGrath RentCorp (MGRC) is between 106.48 to 128.80 according to relative valuation methord.

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

What is the current P/B ratio for McGrath RentCorp (MGRC) as of Dec 16 2025?

As of Dec 16 2025, McGrath RentCorp (MGRC) has a P/B ratio of 2.20. This indicates that the market values MGRC at 2.20 times its book value.

What is the current FCF Yield for McGrath RentCorp (MGRC) as of Dec 16 2025?

As of Dec 16 2025, McGrath RentCorp (MGRC) has a FCF Yield of 5.16%. This means that for every dollar of McGrath RentCorp’s market capitalization, the company generates 5.16 cents in free cash flow.

What is the current Forward P/E ratio for McGrath RentCorp (MGRC) as of Dec 16 2025?

As of Dec 16 2025, McGrath RentCorp (MGRC) has a Forward P/E ratio of 16.60. This means the market is willing to pay $16.60 for every dollar of McGrath RentCorp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for McGrath RentCorp (MGRC) as of Dec 16 2025?

As of Dec 16 2025, McGrath RentCorp (MGRC) has a Forward P/S ratio of 2.71. This means the market is valuing MGRC at $2.71 for every dollar of expected revenue over the next 12 months.

MGRC Valuation