Using the industry peer median P/E multiple (trailing + forward), United Rentals, Inc. (URI) has a fair value of $1,025.33 based on 7 comparable companies in the Rental & Leasing Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| United Rentals, Inc.URI | 48,087 | 19.3x | 17.2x |
| FedEx CorporationFDX | 83,775 | 20.9x | 17.9x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| L3Harris Technologies, Inc.LHX | 65,431 | 41.0x | 30.2x |
| Norfolk Southern CorporationNSC | 63,453 | 22.2x | 23.2x |
| PACCAR IncPCAR | 60,701 | 25.6x | 22.9x |
| W.W. Grainger, Inc.GWW | 50,675 | 30.2x | 27.1x |
| Roper Technologies, Inc.ROP | 37,972 | 24.8x | 19.3x |
| Industry Median | 25.6x | 23.2x | |
| (*) Profit after tax | 2,494 | 2,792 | |
| Equity Value | 63,829 | 68,644 | |
| (/) Outstanding shares | 65 | 65 | |
| Fair Price | $988 | $1063 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.