United Rentals Valuation
| URI Stock | USD 636.22 19.75 3.01% |
At this time, the company appears to be overvalued. United Rentals has a current Real Value of $556.48 per share. The regular price of the company is $636.22. Our model measures the value of United Rentals from inspecting the company fundamentals such as Shares Outstanding of 67.17 M, return on equity of 0.32, and Operating Margin of 0.29 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting United Rentals' valuation include:
Price Book 5.5753 | Enterprise Value 57.1 B | Enterprise Value Ebitda 8.6957 | Price Sales 3.1627 | Forward PE 15.6986 |
Overvalued
Today
Please note that United Rentals' price fluctuation is very steady at this time. Calculation of the real value of United Rentals is based on 3 months time horizon. Increasing United Rentals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for United Rentals is useful when determining the fair value of the United stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of United Rentals. Since United Rentals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of United Stock. However, United Rentals' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 636.22 | Real 556.48 | Target 471.75 | Hype 632.0 | Naive 619.06 |
The real value of United Stock, also known as its intrinsic value, is the underlying worth of United Rentals Company, which is reflected in its stock price. It is based on United Rentals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of United Rentals' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence United Rentals' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of United Rentals helps investors to forecast how United stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of United Rentals more accurately as focusing exclusively on United Rentals' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use United Rentals' intrinsic value based on its ongoing forecasts of United Rentals' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against United Rentals' closest peers. When choosing an evaluation method for United Rentals, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
United Rentals Investments |
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United Valuation Trend
Knowing United Rentals' actual value is paramount for traders to make sound investment determinations. United Rentals' real value is not only important for the investor to make better decisions but also for a more accurate overall view of United Rentals' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both United Rentals' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
United Market Cap
United Rentals is rated first in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 61.36 Billion. United Rentals totals roughly 44.79 Billion in market capitalization claiming about 73% of equities under Industrials industry.United Rentals Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining United Rentals's current stock value. Our valuation model uses many indicators to compare United Rentals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across United Rentals competition to find correlations between indicators driving United Rentals's intrinsic value. More Info.United Rentals is rated below average in price to earning category among related companies. It is rated first in price to book category among related companies fabricating about 0.42 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for United Rentals is roughly 2.36 . The United Rentals' current Price To Book Ratio is estimated to increase to 5.07. Comparative valuation analysis is a catch-all model that can be used if you cannot value United Rentals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for United Rentals' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the United Rentals' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates United Rentals' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in United Rentals and how it compares across the competition.
About United Rentals Valuation
The stock valuation mechanism determines the current worth of United Rentals on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of United Rentals. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of United Rentals based exclusively on its fundamental and basic technical indicators. By analyzing United Rentals's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of United Rentals's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of United Rentals. We calculate exposure to United Rentals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to United Rentals's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.8 B | 6.1 B | |
| Pretax Profit Margin | 0.22 | 0.24 | |
| Operating Profit Margin | 0.27 | 0.28 | |
| Net Profit Margin | 0.17 | 0.18 | |
| Gross Profit Margin | 0.41 | 0.44 |
8 Steps to conduct United Rentals' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates United Rentals' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct United Rentals' valuation analysis, follow these 8 steps:- Gather financial information: Obtain United Rentals' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine United Rentals' revenue streams: Identify United Rentals' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research United Rentals' industry and market trends, including the size of the market, growth rate, and competition.
- Establish United Rentals' growth potential: Evaluate United Rentals' management, business model, and growth potential.
- Determine United Rentals' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate United Rentals' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of United Rentals represents a small ownership stake in the entity. As a stockholder of United, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
United Rentals Dividends Analysis For Valuation
Please note that United Rentals has scaled down on payment of dividends at this time. As of now, United Rentals' Price Earnings To Growth Ratio is increasing as compared to previous years.
There are various types of dividends United Rentals can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of United shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from United Rentals directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When United pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of United Rentals by the value of the dividends paid out.
United Rentals Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as United Rentals does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 68.7 M | |
| Quarterly Earnings Growth Y O Y | 0.098 | |
| Forward Price Earnings | 15.6986 |
United Rentals Current Valuation Indicators
Valuation refers to the process of determining the present value of United Rentals and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value United we look at many different elements of the entity such as United's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. United Rentals' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final United Rentals' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as United Rentals, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use United Rentals' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes United Rentals' worth.When determining whether United Rentals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of United Rentals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of United Rentals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on United Rentals Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in United Rentals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in United Stock please use our How to Invest in United Rentals guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for United Stock analysis
When running United Rentals' price analysis, check to measure United Rentals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy United Rentals is operating at the current time. Most of United Rentals' value examination focuses on studying past and present price action to predict the probability of United Rentals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move United Rentals' price. Additionally, you may evaluate how the addition of United Rentals to your portfolios can decrease your overall portfolio volatility.
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Is United Rentals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of United Rentals. If investors know United will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about United Rentals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.098 | Dividend Share 5.92 | Earnings Share 35.29 | Revenue Per Share 209.318 | Quarterly Revenue Growth 0.131 |
The market value of United Rentals is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Rentals' value that differs from its market value or its book value, called intrinsic value, which is United Rentals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because United Rentals' market value can be influenced by many factors that don't directly affect United Rentals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between United Rentals' value and its price as these two are different measures arrived at by different means. Investors typically determine if United Rentals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Rentals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.