Price to Book Value (P/BV)
since 2005
Calculation
United Rentals Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity (deficit)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 25, 2023 | 3.85 | = | 392.48 | ÷ | 101.82 | 101.82 | = | 7,062 | ÷ | 69,359,591 | |
| Jan 26, 2022 | 3.72 | = | 307.76 | ÷ | 82.72 | 82.72 | = | 5,991 | ÷ | 72,421,902 | |
| Jan 27, 2021 | 3.75 | = | 236.27 | ÷ | 62.95 | 62.95 | = | 4,545 | ÷ | 72,199,276 | |
| Jan 29, 2020 | 2.96 | = | 152.26 | ÷ | 51.50 | 51.50 | = | 3,830 | ÷ | 74,375,477 | |
| Jan 23, 2019 | 2.71 | = | 116.02 | ÷ | 42.76 | 42.76 | = | 3,403 | ÷ | 79,591,082 | |
| Jan 24, 2018 | 5.04 | = | 185.52 | ÷ | 36.79 | 36.79 | = | 3,106 | ÷ | 84,427,665 | |
| Jan 25, 2017 | 5.85 | = | 114.26 | ÷ | 19.55 | 19.55 | = | 1,648 | ÷ | 84,310,531 | |
| Jan 27, 2016 | 3.44 | = | 55.84 | ÷ | 16.23 | 16.23 | = | 1,476 | ÷ | 90,970,229 | |
| Jan 21, 2015 | 4.71 | = | 87.56 | ÷ | 18.61 | 18.61 | = | 1,796 | ÷ | 96,520,626 | |
| Jan 22, 2014 | 4.16 | = | 81.59 | ÷ | 19.61 | 19.61 | = | 1,828 | ÷ | 93,217,882 | |
| Jan 23, 2013 | 2.98 | = | 49.43 | ÷ | 16.59 | 16.59 | = | 1,543 | ÷ | 93,013,431 | |
| Jan 25, 2012 | 34.18 | = | 34.77 | ÷ | 1.02 | 1.02 | = | 64 | ÷ | 62,909,022 | |
| Feb 1, 2011 | — | = | 27.53 | ÷ | -0.33 | -0.33 | = | -20 | ÷ | 60,629,338 | |
| Feb 3, 2010 | — | = | 8.31 | ÷ | -0.32 | -0.32 | = | -19 | ÷ | 60,167,975 | |
| Feb 26, 2009 | — | = | 4.19 | ÷ | -0.48 | -0.48 | = | -29 | ÷ | 60,002,403 | |
| Feb 29, 2008 | 0.86 | = | 20.10 | ÷ | 23.38 | 23.38 | = | 2,018 | ÷ | 86,324,297 | |
| Feb 27, 2007 | 1.52 | = | 28.71 | ÷ | 18.93 | 18.93 | = | 1,538 | ÷ | 81,244,003 | |
| Mar 31, 2006 | 2.18 | = | 34.50 | ÷ | 15.85 | 15.85 | = | 1,229 | ÷ | 77,520,680 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of United Rentals Inc. Annual Report.
The Price to Book Value (P/BV) ratio exhibits significant volatility over the analyzed period, reflecting a cycle of equity erosion, recovery, and subsequent stabilization. The progression is characterized by a severe collapse of shareholders' equity followed by a prolonged period of growth in both asset base and market valuation.
- Equity Erosion and Deficit Phase (2006–2011)
- A downward trend in the P/BV ratio is observed from 2006 to 2008, falling from 2.18 to 0.86 as the share price declined despite an increase in book value per share. This was followed by a critical period between 2009 and 2011 where book value per share became negative, indicating that liabilities exceeded assets. Consequently, the P/BV ratio was not applicable during this interval of negative equity.
- Recovery and Valuation Anomaly (2012)
- A sharp mathematical anomaly occurred in 2012 as book value per share returned to a marginally positive value of 1.02. Because the share price had recovered to 34.77, the P/BV ratio spiked to an extreme peak of 34.18. This outlier reflects the lagging recovery of the balance sheet relative to the market price rather than a sustainable valuation multiple.
- Normalization and Long-term Growth (2013–2023)
- From 2013 onward, the P/BV ratio stabilized, generally oscillating between 2.71 and 5.85. A period of valuation expansion peaked in 2017 with a ratio of 5.85. In the final five years of the sequence, the ratio remained relatively range-bound between 2.71 and 3.85, despite a substantial increase in book value per share, which rose from 42.76 in 2019 to 101.82 in 2023. This suggests that the market valuation has remained proportional to the growth of the company's net asset value.
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Comparison to Competitors
United Rentals Inc., P/BV, long-term trends, comparison to competitors
| United Rentals Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Jan 25, 2023 | 3.85 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Jan 26, 2022 | 3.72 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Jan 27, 2021 | 3.75 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Jan 29, 2020 | 2.96 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Jan 23, 2019 | 2.71 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Jan 24, 2018 | 5.04 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Jan 25, 2017 | 5.85 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Jan 27, 2016 | 3.44 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Jan 21, 2015 | 4.71 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Jan 22, 2014 | 4.16 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Jan 23, 2013 | 2.98 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Jan 25, 2012 | 34.18 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 1, 2011 | — | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 3, 2010 | — | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 26, 2009 | — | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 29, 2008 | 0.86 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 27, 2007 | 1.52 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Mar 31, 2006 | 2.18 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
United Rentals Inc., P/BV, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Jan 25, 2023 | 3.85 | 5.31 |
| Jan 26, 2022 | 3.72 | 4.77 |
| Jan 27, 2021 | 3.75 | 5.05 |
| Jan 29, 2020 | 2.96 | 6.91 |
| Jan 23, 2019 | 2.71 | 6.11 |
| Jan 24, 2018 | 5.04 | 5.42 |
| Jan 25, 2017 | 5.85 | 4.64 |
| Jan 27, 2016 | 3.44 | 3.45 |
| Jan 21, 2015 | 4.71 | 3.17 |
| Jan 22, 2014 | 4.16 | 2.85 |
| Jan 23, 2013 | 2.98 | 2.77 |
| Jan 25, 2012 | 34.18 | 2.89 |
| Feb 1, 2011 | — | 2.90 |
| Feb 3, 2010 | — | 2.29 |
| Feb 26, 2009 | — | 1.86 |
| Feb 29, 2008 | 0.86 | 3.46 |
| Feb 27, 2007 | 1.52 | 3.91 |
| Mar 31, 2006 | 2.18 | 3.47 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
United Rentals Inc., P/BV, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Jan 25, 2023 | 3.85 | 5.50 |
| Jan 26, 2022 | 3.72 | 5.44 |
| Jan 27, 2021 | 3.75 | 5.89 |
| Jan 29, 2020 | 2.96 | 6.28 |
| Jan 23, 2019 | 2.71 | 5.96 |
| Jan 24, 2018 | 5.04 | 5.37 |
| Jan 25, 2017 | 5.85 | 4.89 |
| Jan 27, 2016 | 3.44 | 3.68 |
| Jan 21, 2015 | 4.71 | 3.70 |
| Jan 22, 2014 | 4.16 | 3.14 |
| Jan 23, 2013 | 2.98 | 3.06 |
| Jan 25, 2012 | 34.18 | 3.09 |
| Feb 1, 2011 | — | 3.05 |
| Feb 3, 2010 | — | 2.43 |
| Feb 26, 2009 | — | 2.01 |
| Feb 29, 2008 | 0.86 | 3.45 |
| Feb 27, 2007 | 1.52 | 3.75 |
| Mar 31, 2006 | 2.18 | 3.95 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).