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 Undervalued zone, suggesting that its current forward PE ratio of 16.08 is considered Undervalued compared with the five-year average of 19.40. The fair price of McGrath RentCorp (MGRC) is between 104.95 to 127.03 according to relative valuation methord. Compared to the current price of 103.32 USD , McGrath RentCorp is Undervalued By 1.56%.
Relative Value
Fair Zone
104.95-127.03
Current Price：103.32
1.56%
Undervalued
16.08
PE
1Y
3Y
5Y
Trailing
Forward
8.55
EV/EBITDA
McGrath RentCorp. (MGRC) has a current EV/EBITDA of 8.55. The 5-year average EV/EBITDA is 9.40. The thresholds are as follows: Strongly Undervalued below 7.76, Undervalued between 7.76 and 8.58, Fairly Valued between 10.22 and 8.58, Overvalued between 10.22 and 11.04, and Strongly Overvalued above 11.04. The current Forward EV/EBITDA of 8.55 falls within the Undervalued range.
12.57
EV/EBIT
McGrath RentCorp. (MGRC) has a current EV/EBIT of 12.57. 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 12.57 falls within the Undervalued range.
2.65
PS
McGrath RentCorp. (MGRC) has a current PS of 2.65. 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 2.65 falls within the Undervalued range.
10.52
P/OCF
McGrath RentCorp. (MGRC) has a current P/OCF of 10.52. The 5-year average P/OCF is 12.66. The thresholds are as follows: Strongly Undervalued below 7.51, Undervalued between 7.51 and 10.08, Fairly Valued between 15.23 and 10.08, Overvalued between 15.23 and 17.81, and Strongly Overvalued above 17.81. The current Forward P/OCF of 10.52 falls within the Historic Trend Line -Fairly Valued range.
12.85
P/FCF
McGrath RentCorp. (MGRC) has a current P/FCF of 12.85. The 5-year average P/FCF is 26.91. The thresholds are as follows: Strongly Undervalued below -1.20, Undervalued between -1.20 and 12.86, Fairly Valued between 40.96 and 12.86, Overvalued between 40.96 and 55.01, and Strongly Overvalued above 55.01. The current Forward P/FCF of 12.85 falls within the Undervalued range.
McGrath RentCorp (MGRC) has a current Price-to-Book (P/B) ratio of 2.13. Compared to its 3-year average P/B ratio of 2.71 , the current P/B ratio is approximately -21.69% higher. Relative to its 5-year average P/B ratio of 2.71, the current P/B ratio is about -21.43% higher. McGrath RentCorp (MGRC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.00%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.76% , the current FCF yield is about -100.00% lower.
2.13
P/B
Median3y
2.71
Median5y
2.71
5.27
FCF Yield
Median3y
2.00
Median5y
3.76
Competitors Valuation Multiple
The average P/S ratio for MGRC's competitors is , providing a benchmark for relative valuation. McGrath RentCorp Corp (MGRC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.87%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MGRC decreased by 7.60% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.50 to 17.51.
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.
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