Intrinsic value of United Rentals - URI

Previous Close

$156.57

  Intrinsic Value

$178.56

stock screener

  Rating & Target

hold

+14%

Previous close

$156.57

 
Intrinsic value

$178.56

 
Up/down potential

+14%

 
Rating

hold

We calculate the intrinsic value of URI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 13.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  15.30
  14.27
  13.34
  12.51
  11.76
  11.08
  10.47
  9.93
  9.43
  8.99
  8.59
  8.23
  7.91
  7.62
  7.36
  7.12
  6.91
  6.72
  6.55
  6.39
  6.25
  6.13
  6.01
  5.91
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
Revenue, $m
  7,657
  8,750
  9,917
  11,158
  12,470
  13,852
  15,302
  16,821
  18,408
  20,063
  21,787
  23,580
  25,445
  27,384
  29,398
  31,492
  33,667
  35,929
  38,281
  40,728
  43,274
  45,925
  48,687
  51,566
  54,568
  57,700
  60,969
  64,383
  67,949
  71,676
Variable operating expenses, $m
  5,698
  6,440
  7,233
  8,076
  8,967
  9,906
  10,891
  11,923
  13,001
  14,126
  14,801
  16,020
  17,287
  18,603
  19,972
  21,394
  22,872
  24,409
  26,006
  27,669
  29,398
  31,200
  33,076
  35,032
  37,071
  39,199
  41,420
  43,739
  46,162
  48,694
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  5,698
  6,440
  7,233
  8,076
  8,967
  9,906
  10,891
  11,923
  13,001
  14,126
  14,801
  16,020
  17,287
  18,603
  19,972
  21,394
  22,872
  24,409
  26,006
  27,669
  29,398
  31,200
  33,076
  35,032
  37,071
  39,199
  41,420
  43,739
  46,162
  48,694
Operating income, $m
  1,959
  2,310
  2,684
  3,082
  3,503
  3,946
  4,411
  4,898
  5,407
  5,937
  6,986
  7,561
  8,159
  8,780
  9,426
  10,098
  10,795
  11,520
  12,274
  13,059
  13,875
  14,726
  15,611
  16,534
  17,497
  18,501
  19,549
  20,644
  21,787
  22,982
EBITDA, $m
  3,831
  4,378
  4,962
  5,583
  6,239
  6,931
  7,656
  8,416
  9,210
  10,038
  10,901
  11,798
  12,731
  13,701
  14,709
  15,757
  16,845
  17,977
  19,154
  20,378
  21,652
  22,978
  24,360
  25,801
  27,303
  28,870
  30,505
  32,213
  33,998
  35,863
Interest expense (income), $m
  415
  510
  608
  714
  827
  947
  1,074
  1,208
  1,348
  1,496
  1,649
  1,810
  1,977
  2,150
  2,331
  2,519
  2,714
  2,917
  3,128
  3,347
  3,575
  3,812
  4,058
  4,315
  4,583
  4,862
  5,153
  5,456
  5,773
  6,103
  6,449
Earnings before tax, $m
  1,450
  1,702
  1,971
  2,255
  2,556
  2,872
  3,203
  3,550
  3,911
  4,288
  5,176
  5,584
  6,008
  6,449
  6,907
  7,384
  7,878
  8,393
  8,928
  9,484
  10,064
  10,667
  11,296
  11,952
  12,635
  13,349
  14,093
  14,871
  15,684
  16,533
Tax expense, $m
  391
  460
  532
  609
  690
  775
  865
  958
  1,056
  1,158
  1,398
  1,508
  1,622
  1,741
  1,865
  1,994
  2,127
  2,266
  2,410
  2,561
  2,717
  2,880
  3,050
  3,227
  3,411
  3,604
  3,805
  4,015
  4,235
  4,464
Net income, $m
  1,058
  1,243
  1,439
  1,646
  1,866
  2,096
  2,338
  2,591
  2,855
  3,130
  3,779
  4,077
  4,386
  4,708
  5,042
  5,390
  5,751
  6,127
  6,517
  6,924
  7,347
  7,787
  8,246
  8,725
  9,224
  9,744
  10,288
  10,856
  11,449
  12,069

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  17,324
  19,796
  22,437
  25,244
  28,212
  31,338
  34,621
  38,057
  41,647
  45,392
  49,292
  53,349
  57,569
  61,954
  66,512
  71,248
  76,170
  81,287
  86,608
  92,144
  97,905
  103,903
  110,153
  116,666
  123,458
  130,543
  137,939
  145,662
  153,731
  162,163
Adjusted assets (=assets-cash), $m
  17,324
  19,796
  22,437
  25,244
  28,212
  31,338
  34,621
  38,057
  41,647
  45,392
  49,292
  53,349
  57,569
  61,954
  66,512
  71,248
  76,170
  81,287
  86,608
  92,144
  97,905
  103,903
  110,153
  116,666
  123,458
  130,543
  137,939
  145,662
  153,731
  162,163
Revenue / Adjusted assets
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
Average production assets, $m
  13,760
  15,723
  17,821
  20,050
  22,408
  24,891
  27,498
  30,228
  33,080
  36,053
  39,151
  42,374
  45,725
  49,209
  52,829
  56,590
  60,500
  64,564
  68,791
  73,187
  77,763
  82,528
  87,491
  92,665
  98,059
  103,687
  109,562
  115,696
  122,104
  128,802
Working capital, $m
  -383
  -437
  -496
  -558
  -623
  -693
  -765
  -841
  -920
  -1,003
  -1,089
  -1,179
  -1,272
  -1,369
  -1,470
  -1,575
  -1,683
  -1,796
  -1,914
  -2,036
  -2,164
  -2,296
  -2,434
  -2,578
  -2,728
  -2,885
  -3,048
  -3,219
  -3,397
  -3,584
Total debt, $m
  11,254
  13,214
  15,309
  17,534
  19,888
  22,367
  24,970
  27,695
  30,542
  33,512
  36,604
  39,822
  43,168
  46,646
  50,260
  54,016
  57,919
  61,977
  66,196
  70,586
  75,155
  79,911
  84,867
  90,032
  95,418
  101,037
  106,902
  113,026
  119,424
  126,111
Total liabilities, $m
  13,738
  15,698
  17,793
  20,018
  22,372
  24,851
  27,454
  30,179
  33,026
  35,996
  39,088
  42,306
  45,652
  49,130
  52,744
  56,500
  60,403
  64,461
  68,680
  73,070
  77,639
  82,395
  87,351
  92,516
  97,902
  103,521
  109,386
  115,510
  121,908
  128,595
Total equity, $m
  3,586
  4,098
  4,644
  5,225
  5,840
  6,487
  7,166
  7,878
  8,621
  9,396
  10,203
  11,043
  11,917
  12,825
  13,768
  14,748
  15,767
  16,826
  17,928
  19,074
  20,266
  21,508
  22,802
  24,150
  25,556
  27,022
  28,553
  30,152
  31,822
  33,568
Total liabilities and equity, $m
  17,324
  19,796
  22,437
  25,243
  28,212
  31,338
  34,620
  38,057
  41,647
  45,392
  49,291
  53,349
  57,569
  61,955
  66,512
  71,248
  76,170
  81,287
  86,608
  92,144
  97,905
  103,903
  110,153
  116,666
  123,458
  130,543
  137,939
  145,662
  153,730
  162,163
Debt-to-equity ratio
  3.140
  3.220
  3.300
  3.360
  3.410
  3.450
  3.480
  3.520
  3.540
  3.570
  3.590
  3.610
  3.620
  3.640
  3.650
  3.660
  3.670
  3.680
  3.690
  3.700
  3.710
  3.720
  3.720
  3.730
  3.730
  3.740
  3.740
  3.750
  3.750
  3.760
Adjusted equity ratio
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,058
  1,243
  1,439
  1,646
  1,866
  2,096
  2,338
  2,591
  2,855
  3,130
  3,779
  4,077
  4,386
  4,708
  5,042
  5,390
  5,751
  6,127
  6,517
  6,924
  7,347
  7,787
  8,246
  8,725
  9,224
  9,744
  10,288
  10,856
  11,449
  12,069
Depreciation, amort., depletion, $m
  1,872
  2,068
  2,278
  2,501
  2,736
  2,985
  3,246
  3,518
  3,804
  4,101
  3,915
  4,237
  4,573
  4,921
  5,283
  5,659
  6,050
  6,456
  6,879
  7,319
  7,776
  8,253
  8,749
  9,266
  9,806
  10,369
  10,956
  11,570
  12,210
  12,880
Funds from operations, $m
  2,930
  3,311
  3,716
  4,147
  4,602
  5,081
  5,584
  6,110
  6,659
  7,231
  7,694
  8,314
  8,959
  9,629
  10,325
  11,049
  11,801
  12,583
  13,396
  14,242
  15,123
  16,040
  16,995
  17,991
  19,030
  20,113
  21,244
  22,426
  23,660
  24,950
Change in working capital, $m
  -51
  -55
  -58
  -62
  -66
  -69
  -73
  -76
  -79
  -83
  -86
  -90
  -93
  -97
  -101
  -105
  -109
  -113
  -118
  -122
  -127
  -133
  -138
  -144
  -150
  -157
  -163
  -171
  -178
  -186
Cash from operations, $m
  2,981
  3,365
  3,775
  4,209
  4,668
  5,150
  5,656
  6,186
  6,738
  7,314
  7,780
  8,404
  9,052
  9,726
  10,426
  11,154
  11,910
  12,696
  13,514
  14,365
  15,250
  16,172
  17,133
  18,135
  19,180
  20,270
  21,408
  22,596
  23,838
  25,136
Maintenance CAPEX, $m
  -1,193
  -1,376
  -1,572
  -1,782
  -2,005
  -2,241
  -2,489
  -2,750
  -3,023
  -3,308
  -3,605
  -3,915
  -4,237
  -4,573
  -4,921
  -5,283
  -5,659
  -6,050
  -6,456
  -6,879
  -7,319
  -7,776
  -8,253
  -8,749
  -9,266
  -9,806
  -10,369
  -10,956
  -11,570
  -12,210
New CAPEX, $m
  -1,825
  -1,964
  -2,098
  -2,229
  -2,357
  -2,483
  -2,607
  -2,730
  -2,852
  -2,974
  -3,097
  -3,223
  -3,351
  -3,483
  -3,620
  -3,762
  -3,910
  -4,064
  -4,226
  -4,397
  -4,576
  -4,765
  -4,963
  -5,173
  -5,395
  -5,628
  -5,874
  -6,134
  -6,408
  -6,698
Cash from investing activities, $m
  -3,018
  -3,340
  -3,670
  -4,011
  -4,362
  -4,724
  -5,096
  -5,480
  -5,875
  -6,282
  -6,702
  -7,138
  -7,588
  -8,056
  -8,541
  -9,045
  -9,569
  -10,114
  -10,682
  -11,276
  -11,895
  -12,541
  -13,216
  -13,922
  -14,661
  -15,434
  -16,243
  -17,090
  -17,978
  -18,908
Free cash flow, $m
  -38
  26
  104
  198
  305
  426
  560
  706
  864
  1,032
  1,077
  1,265
  1,463
  1,670
  1,885
  2,109
  2,341
  2,582
  2,831
  3,089
  3,356
  3,632
  3,917
  4,213
  4,519
  4,836
  5,165
  5,506
  5,860
  6,228
Issuance/(repayment) of debt, $m
  1,814
  1,960
  2,095
  2,226
  2,354
  2,479
  2,603
  2,725
  2,847
  2,969
  3,093
  3,218
  3,346
  3,478
  3,614
  3,756
  3,903
  4,058
  4,220
  4,390
  4,569
  4,757
  4,956
  5,165
  5,386
  5,619
  5,865
  6,124
  6,398
  6,687
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,814
  1,960
  2,095
  2,226
  2,354
  2,479
  2,603
  2,725
  2,847
  2,969
  3,093
  3,218
  3,346
  3,478
  3,614
  3,756
  3,903
  4,058
  4,220
  4,390
  4,569
  4,757
  4,956
  5,165
  5,386
  5,619
  5,865
  6,124
  6,398
  6,687
Total cash flow (excl. dividends), $m
  1,776
  1,986
  2,199
  2,423
  2,659
  2,906
  3,163
  3,431
  3,711
  4,001
  4,170
  4,483
  4,809
  5,148
  5,499
  5,865
  6,245
  6,640
  7,051
  7,479
  7,924
  8,388
  8,873
  9,378
  9,905
  10,455
  11,030
  11,630
  12,258
  12,915
Retained Cash Flow (-), $m
  -480
  -512
  -547
  -581
  -614
  -647
  -679
  -711
  -743
  -775
  -807
  -840
  -873
  -908
  -943
  -980
  -1,019
  -1,059
  -1,101
  -1,146
  -1,193
  -1,242
  -1,294
  -1,348
  -1,406
  -1,467
  -1,531
  -1,599
  -1,670
  -1,745
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  86
  100
  114
  129
  145
  162
  180
  199
  219
  239
  261
  283
  307
  331
  356
  382
  409
  438
  467
  498
  529
  563
  597
  633
  670
  709
  750
  793
  837
  883
Cash available for distribution, $m
  1,296
  1,474
  1,652
  1,842
  2,045
  2,258
  2,484
  2,720
  2,968
  3,226
  3,362
  3,643
  3,936
  4,240
  4,556
  4,884
  5,226
  5,580
  5,949
  6,333
  6,732
  7,147
  7,579
  8,029
  8,499
  8,988
  9,499
  10,032
  10,588
  11,169
Discount rate, %
  9.10
  9.56
  10.03
  10.53
  11.06
  11.61
  12.19
  12.80
  13.44
  14.12
  14.82
  15.56
  16.34
  17.16
  18.02
  18.92
  19.86
  20.86
  21.90
  23.00
  24.15
  25.35
  26.62
  27.95
  29.35
  30.82
  32.36
  33.97
  35.67
  37.46
PV of cash for distribution, $m
  1,188
  1,228
  1,240
  1,234
  1,210
  1,168
  1,110
  1,037
  954
  861
  735
  642
  550
  462
  380
  305
  240
  184
  138
  101
  72
  50
  33
  22
  14
  8
  5
  3
  2
  1
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

United Rentals, Inc. is a holding company. The Company is an equipment rental company, which operates throughout the United States and Canada. It operates through two segments: general rentals, and trench, power and pump. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities. The trench, power and pump segment includes the rental of specialty construction products and related services. Its general rentals segment includes the rental of general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts, and general tools and light equipment, such as pressure washers, water pumps and power tools. As of January 1, 2017, it operated 887 rental locations. The Company conducts its operations through its subsidiary, United Rentals (North America), Inc. (URNA) and subsidiaries of URNA.

FINANCIAL RATIOS  of  United Rentals (URI)

Valuation Ratios
P/E Ratio 23.3
Price to Sales 2.3
Price to Book 8
Price to Tangible Book
Price to Cash Flow 6.8
Price to Free Cash Flow 21.5
Growth Rates
Sales Growth Rate -0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.2%
Cap. Spend. - 3 Yr. Gr. Rate -4.5%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 436.5%
Total Debt to Equity 472.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 6.8%
Ret/ On Assets - 3 Yr. Avg. 7%
Return On Total Capital 5.9%
Ret/ On T. Cap. - 3 Yr. Avg. 5.9%
Return On Equity 36.2%
Return On Equity - 3 Yr. Avg. 33.9%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 41.7%
Gross Margin - 3 Yr. Avg. 42.4%
EBITDA Margin 44.6%
EBITDA Margin - 3 Yr. Avg. 44.7%
Operating Margin 24.6%
Oper. Margin - 3 Yr. Avg. 25%
Pre-Tax Margin 15.8%
Pre-Tax Margin - 3 Yr. Avg. 15.8%
Net Profit Margin 9.8%
Net Profit Margin - 3 Yr. Avg. 9.8%
Effective Tax Rate 37.7%
Eff/ Tax Rate - 3 Yr. Avg. 37.8%
Payout Ratio 0%

URI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the URI stock intrinsic value calculation we used $6641 million for the last fiscal year's total revenue generated by United Rentals. The default revenue input number comes from 2017 income statement of United Rentals. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our URI stock valuation model: a) initial revenue growth rate of 15.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.1%, whose default value for URI is calculated based on our internal credit rating of United Rentals, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of United Rentals.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of URI stock the variable cost ratio is equal to 75.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for URI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for United Rentals.

Corporate tax rate of 27% is the nominal tax rate for United Rentals. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the URI stock is equal to 1.3%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for URI are equal to 179.7%.

Life of production assets of 10 years is the average useful life of capital assets used in United Rentals operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for URI is equal to -5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3106 million for United Rentals - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 85 million for United Rentals is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of United Rentals at the current share price and the inputted number of shares is $13.3 billion.

RELATED COMPANIES Price Int.Val. Rating
HEES H&E Equipment 39.64 82.05  str.buy
HRI Herc Holdings 60.73 5.71  str.sell

COMPANY NEWS

▶ United Rentals: 2Q Earnings Snapshot   [Jul-18-18 04:24PM  Associated Press]
▶ United Rentals Q2 Earnings Preview   [09:39AM  Benzinga]
▶ These Companies are Earnings All-Stars   [Jul-17-18 03:37PM  Zacks]
▶ Your first trade for Friday, July 6   [Jul-06-18 09:15AM  CNBC]
▶ Final Trade: KKR, URI & more   [Jul-05-18 05:30PM  CNBC Videos]
▶ Company News For Jul 3, 2018   [Jul-03-18 09:25AM  Zacks]
▶ [$$] United Rentals to Buy BakerCorp for Roughly $715 Million   [Jul-02-18 07:23PM  The Wall Street Journal]
▶ United Rentals to buy BakerCorp for $715 miillion   [05:37PM  American City Business Journals]
▶ United Rentals to Acquire BakerCorp   [07:30AM  Business Wire]
▶ Supreme Court rules warrants needed for cellphone tracking   [Jun-22-18 03:10PM  Yahoo Finance]
▶ 3 Construction Stocks to Buy Right Now   [Jun-18-18 10:03AM  InvestorPlace]
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▶ Stocks jump, Trump second-guesses Sessions   [11:38AM  Yahoo Finance]
▶ Yahoo Finance Live: Midday Movers - May 30th, 2018   [09:40AM  Yahoo Finance Video]
▶ Top Ranked Value Stocks to Buy for May 18th   [May-18-18 10:55AM  Zacks]
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▶ Why More Companies Might Issue 'Special Dividends' Soon   [May-05-18 12:00PM  TheStreet.com]
▶ Top Ranked Value Stocks to Buy for May 4th   [May-04-18 10:36AM  Zacks]
▶ Cramer Remix: The world has turned on this sector   [Apr-30-18 07:06PM  CNBC Videos]
▶ Cramer Remix Contemplate   [07:00PM  CNBC]
▶ United Rentals: 1Q Earnings Snapshot   [Apr-18-18 04:55PM  Associated Press]
▶ United Rentals Crushes Q1 Views, OKs $1.25 Billion Buyback   [04:23PM  Investor's Business Daily]
▶ 5 Amazing Earnings Charts This Week   [Apr-17-18 09:02PM  Zacks]
▶ United Rentals Could be Topping   [11:13AM  TheStreet.com]
▶ Buy United Rentals over Caterpillar   [Apr-12-18 07:22PM  CNBC Videos]
▶ How to track progress in the China 'trade war'   [Apr-06-18 06:56PM  CNBC Videos]
▶ These 3 Stocks Are Up Over 500% in the Last 7 Years   [Mar-16-18 08:15AM  Motley Fool]
▶ Matthew Flannery Appointed President of United Rentals   [Mar-08-18 04:15PM  Business Wire]
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