United Rentals, Inc., through its subsidiaries, operates as an equipment rental company in the United States, Canada, Europe, Australia, and New Zealand. It operates through two segments, General Rentals and Specialty.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (20 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $1022.61 Implied EV: $78.93B |
What growth rate is the market pricing in at $1077?
The market implies +14.5% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +18.4%, reflecting heavy growth investment.
Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Near fair value but market is greedy — optimism is already priced in
