URI Relative Valuation
URI'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, URI is overvalued; if below, it's undervalued.
Historical Valuation
United Rentals Inc (URI) is now in the Fair zone, suggesting that its current forward PE ratio of 17.87 is considered Fairly compared with the five-year average of 13.41. The fair price of United Rentals Inc (URI) is between 608.95 to 855.53 according to relative valuation methord.
Relative Value
Fair Zone
608.95-855.53
Current Price：813.66
Fair
17.74
PE
1Y
3Y
5Y
Trailing
Forward
8.72
EV/EBITDA
United Rentals Inc. (URI) has a current EV/EBITDA of 8.72. The 5-year average EV/EBITDA is 7.20. The thresholds are as follows: Strongly Undervalued below 4.57, Undervalued between 4.57 and 5.88, Fairly Valued between 8.51 and 5.88, Overvalued between 8.51 and 9.82, and Strongly Overvalued above 9.82. The current Forward EV/EBITDA of 8.72 falls within the Overvalued range.
15.40
EV/EBIT
United Rentals Inc. (URI) has a current EV/EBIT of 15.40. The 5-year average EV/EBIT is 12.83. The thresholds are as follows: Strongly Undervalued below 8.01, Undervalued between 8.01 and 10.42, Fairly Valued between 15.23 and 10.42, Overvalued between 15.23 and 17.64, and Strongly Overvalued above 17.64. The current Forward EV/EBIT of 15.40 falls within the Overvalued range.
3.08
PS
United Rentals Inc. (URI) has a current PS of 3.08. The 5-year average PS is 2.46. The thresholds are as follows: Strongly Undervalued below 1.28, Undervalued between 1.28 and 1.87, Fairly Valued between 3.05 and 1.87, Overvalued between 3.05 and 3.64, and Strongly Overvalued above 3.64. The current Forward PS of 3.08 falls within the Overvalued range.
9.82
P/OCF
United Rentals Inc. (URI) has a current P/OCF of 9.82. The 5-year average P/OCF is 7.50. The thresholds are as follows: Strongly Undervalued below 3.57, Undervalued between 3.57 and 5.54, Fairly Valued between 9.47 and 5.54, Overvalued between 9.47 and 11.44, and Strongly Overvalued above 11.44. The current Forward P/OCF of 9.82 falls within the Overvalued range.
20.37
P/FCF
United Rentals Inc. (URI) has a current P/FCF of 20.37. The 5-year average P/FCF is 15.97. The thresholds are as follows: Strongly Undervalued below 8.02, Undervalued between 8.02 and 12.00, Fairly Valued between 19.94 and 12.00, Overvalued between 19.94 and 23.92, and Strongly Overvalued above 23.92. The current Forward P/FCF of 20.37 falls within the Overvalued range.
United Rentals Inc (URI) has a current Price-to-Book (P/B) ratio of 5.76. Compared to its 3-year average P/B ratio of 5.09 , the current P/B ratio is approximately 13.24% higher. Relative to its 5-year average P/B ratio of 4.72, the current P/B ratio is about 22.19% higher. United Rentals Inc (URI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.00%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.23% , the current FCF yield is about -100.00% lower.
5.72
P/B
Median3y
5.09
Median5y
4.72
3.73
FCF Yield
Median3y
5.00
Median5y
6.23
Competitors Valuation Multiple
The average P/S ratio for URI's competitors is , providing a benchmark for relative valuation. United Rentals Inc Corp (URI) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.94%, 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 URI increased by 14.66% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.05 to 20.80.
The secondary factor is the Revenue Growth, contributed 5.94%to the performance.
Overall, the performance of URI in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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