United Rentals, Inc. (URI) DCF Valuation
A meaningful DCF fair value isn't available for United Rentals, Inc. (URI) — its free-cash-flow and net-debt profile makes a standard discounted-cash-flow model unreliable (common for loss-makers and high-net-debt or recently-public companies), and no analyst DCF is published. Explore your own assumptions with the editable model below.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 11.1%/yr | 12.5% | N/A |
| Base case | 14.1%/yr | 11.5% | N/A |
| Optimistic | 17.1%/yr | 10.5% | N/A |
Current Price
$1,121.66
Market-Implied Growth
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Base-Case Model Value
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URI DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for URI (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $648.0M · 0.06B shares · net debt $14.9B
Estimated Fair Value
$28.27
-97.5% vs $1121.66
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 14.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $1121.66; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.5% | $90.92 | $105 | $121 | $140 | $162 |
| 10.5% | $46.90 | $57.20 | $68.78 | $81.90 | $96.90 |
| 11.5% | $12.14 | $19.78 | $28.27 | $37.76 | $48.44 |
| 12.5% | — | — | — | $3.30 | $11.13 |
| 13.5% | — | — | — | — | — |
About United Rentals, Inc.
United Rentals, Inc., founded in 1997 and headquartered in Stamford, Connecticut, functions as a prominent equipment rental firm through its various subsidiaries. The company's operations are divided into two main divisions: General Rentals and Specialty. The General Rentals segment offers a broad selection of construction and industrial machinery, including heavy equipment like backhoes, skid-steer loaders, earthmoving machinery, and forklifts, alongside aerial work platforms such as boom and scissor lifts. This division also provides general tools and lighter equipment, ranging from pressure washers to power tools. Its client base is diverse, encompassing construction and industrial enterprises, manufacturers, utility companies, municipalities, government bodies, and individual homeowners. Conversely, the Specialty segment focuses on more specialized construction products. This includes comprehensive trench safety gear, such as trench shields, aluminum hydraulic shoring systems, and construction lasers, designed for underground work. It also supplies power generation and climate control equipment, featuring portable diesel generators, electrical distribution units, and temperature management systems. Additionally, the segment offers fluid solutions for containment, transfer, and treatment, as well as mobile storage units and modular office spaces. This segment primarily caters to companies undertaking infrastructure projects, municipalities, and industrial clients. Beyond rentals, United Rentals also sells new equipment, including aerial lifts, telehandlers, and compressors, along with construction consumables, tools, small equipment, and safety supplies. It further provides parts for customer-owned machinery and offers repair and maintenance services. The company remarkets its used equipment through its dedicated sales force, brokers, its website, direct sales to manufacturers, and auctions. United Rentals maintains an extensive network of 1,360 rental facilities across the United States, Canada, Europe, Australia, and New Zealand.
- Sector
- Industrials
- Industry
- Rental & Leasing Services
- CEO
- Matthew J. Flannery