United Rentals Valuation

URI Stock  USD 720.15  15.34  2.18%   
At this time, the company appears to be overvalued. United Rentals has a current Real Value of $549.14 per share. The regular price of the company is $720.15. Our model measures the value of United Rentals from inspecting the company fundamentals such as Return On Equity of 0.32, operating margin of 0.29 %, and Shares Outstanding of 67.19 M 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.
Price Book
5.825
Enterprise Value
59.7 B
Enterprise Value Ebitda
9.002
Price Sales
3.3043
Forward PE
16.3934
Overvalued
Today
720.15
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  720.15 Real  549.14 Target  471.75 Hype  718.89 Naive  715.56
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.
546.81
Downside
549.14
Real Value
792.17
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
7.798.308.81
Details
Hype
Prediction
LowEstimatedHigh
716.56718.89721.22
Details
Potential
Annual Dividend
LowForecastedHigh
2.502.522.54
Details
24 Analysts
Consensus
LowTarget PriceHigh
429.29471.75523.64
Details

United Rentals Investments

(4.93 Billion)

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 first in price to earning category among related companies. It is rated second in net asset category among related companies making up about  1,947,412,481  of Net Asset per Price To Earning. . 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 ReportedProjected for 2024
Gross Profit5.8 B6.1 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.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
United Rentals' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether United Rentals' value is low or high relative to the company's performance and growth projections. Determining the market value of United Rentals can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

The United Rentals' current Dividend Payout Ratio is estimated to increase to 0.16, while Dividends Paid is projected to decrease to under 224 M. . As of now, United Rentals' Retained Earnings are increasing as compared to previous years. The United Rentals' current Retained Earnings Total Equity is estimated to increase to about 11.7 B, while Price Earnings Ratio is projected to decrease to 15.11.
Last ReportedProjected for 2024
Dividends Paid406 M224 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.15  0.16 
Dividend Paid And Capex Coverage Ratio(1.28)(1.35)
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 Outstanding68.7 M
Quarterly Earnings Growth Y O Y0.098
Forward Price Earnings16.3934

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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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
35.31
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.