Is United Rentals Inc (URI) overvalued?
On Equity Rank's model estimate, URI trades close to its fair value (3% below it). United Rentals Inc (URI) last closed at $1,055.57; the multi-method model fair value is $1,084.29.
| Price | Model fair value | Price vs model |
|---|---|---|
| $1055.57 | $1084.29 | 3% below |
What the answer rests on
- 3 of 10 valuation methods put URI's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, URI's free cash flow would need to grow about 34.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -3.8% a year.
- URI trades at 25.9 times its last year's earnings, against a median of 24.8 for 187 profitable Industrials companies.
- Over the past year the price sat below the model fair value on 51% of trading days. The gap ranged from 6% below to 24% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind URI's fair value · What prices assume · Other companies