Price to Earnings (P/E)
since 2005
Calculation
United Rentals Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) available to common stockholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 25, 2023 | 12.93 | = | 392.48 | ÷ | 30.35 | 30.35 | = | 2,105 | ÷ | 69,359,591 | |
| Jan 26, 2022 | 16.08 | = | 307.76 | ÷ | 19.14 | 19.14 | = | 1,386 | ÷ | 72,421,902 | |
| Jan 27, 2021 | 19.17 | = | 236.27 | ÷ | 12.33 | 12.33 | = | 890 | ÷ | 72,199,276 | |
| Jan 29, 2020 | 9.65 | = | 152.26 | ÷ | 15.78 | 15.78 | = | 1,174 | ÷ | 74,375,477 | |
| Jan 23, 2019 | 8.43 | = | 116.02 | ÷ | 13.77 | 13.77 | = | 1,096 | ÷ | 79,591,082 | |
| Jan 24, 2018 | 11.64 | = | 185.52 | ÷ | 15.94 | 15.94 | = | 1,346 | ÷ | 84,427,665 | |
| Jan 25, 2017 | 17.02 | = | 114.26 | ÷ | 6.71 | 6.71 | = | 566 | ÷ | 84,310,531 | |
| Jan 27, 2016 | 8.68 | = | 55.84 | ÷ | 6.43 | 6.43 | = | 585 | ÷ | 90,970,229 | |
| Jan 21, 2015 | 15.65 | = | 87.56 | ÷ | 5.59 | 5.59 | = | 540 | ÷ | 96,520,626 | |
| Jan 22, 2014 | 19.65 | = | 81.59 | ÷ | 4.15 | 4.15 | = | 387 | ÷ | 93,217,882 | |
| Jan 23, 2013 | 61.30 | = | 49.43 | ÷ | 0.81 | 0.81 | = | 75 | ÷ | 93,013,431 | |
| Jan 25, 2012 | 21.66 | = | 34.77 | ÷ | 1.61 | 1.61 | = | 101 | ÷ | 62,909,022 | |
| Feb 1, 2011 | — | = | 27.53 | ÷ | -0.43 | -0.43 | = | -26 | ÷ | 60,629,338 | |
| Feb 3, 2010 | — | = | 8.31 | ÷ | -1.03 | -1.03 | = | -62 | ÷ | 60,167,975 | |
| Feb 26, 2009 | — | = | 4.19 | ÷ | -15.72 | -15.72 | = | -943 | ÷ | 60,002,403 | |
| Feb 29, 2008 | 4.79 | = | 20.10 | ÷ | 4.19 | 4.19 | = | 362 | ÷ | 86,324,297 | |
| Feb 27, 2007 | 10.41 | = | 28.71 | ÷ | 2.76 | 2.76 | = | 224 | ÷ | 81,244,003 | |
| Mar 31, 2006 | 14.30 | = | 34.50 | ÷ | 2.41 | 2.41 | = | 187 | ÷ | 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 financial performance from 2006 to 2023 indicates a strong long-term growth trend in both valuation and profitability, despite a period of extreme volatility during the global financial crisis. The share price experienced a dramatic contraction from 2006 levels, reaching a minimum in 2009, before entering a sustained upward trajectory that culminated in a value of 392.48 by 2023.
- Earnings Performance and Valuation Gap
- Earnings per share exhibited severe volatility, falling from 4.19 in 2008 to a low of -15.72 in 2009. This transition into negative earnings rendered the Price-to-Earnings (P/E) ratio inapplicable between 2009 and 2011. Profitability returned in 2012, with earnings per share growing consistently to reach 30.35 by 2023.
- Post-Crisis Valuation Spike
- Upon the return to profitability in 2012, a significant spike in the P/E ratio is observed, peaking at 61.30 in 2013. This suggests a period where the share price grew at a rate far exceeding the immediate recovery of earnings, reflecting an expansion in market multiples or high investor expectations during the early recovery phase.
- Normalization and Fundamental Support
- From 2014 through 2023, the P/E ratio entered a phase of relative normalization, generally fluctuating between 8.43 and 19.65. While the share price increased substantially from 81.59 in 2014 to 392.48 in 2023, the P/E ratio remained relatively stable, indicating that the increase in market valuation was fundamentally supported by corresponding growth in earnings per share.
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Comparison to Competitors
United Rentals Inc., P/E, 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 | 12.93 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Jan 26, 2022 | 16.08 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Jan 27, 2021 | 19.17 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
| Jan 29, 2020 | 9.65 | — | 12.36 | 18.06 | — | 20.97 | 19.87 | 24.41 |
| Jan 23, 2019 | 8.43 | 21.87 | 12.42 | 15.92 | — | 16.02 | 16.88 | 19.74 |
| Jan 24, 2018 | 11.64 | 24.68 | 126.80 | 11.90 | — | 67.20 | 48.70 | 21.97 |
| Jan 25, 2017 | 17.02 | 20.50 | — | 16.96 | 32.22 | 19.29 | 14.14 | 17.55 |
| Jan 27, 2016 | 8.68 | 14.89 | 18.07 | 13.17 | — | 16.70 | 18.36 | 9.31 |
| Jan 21, 2015 | 15.65 | 19.15 | 14.01 | 18.73 | 17.17 | 19.27 | 16.86 | 17.52 |
| Jan 22, 2014 | 19.65 | 21.10 | 16.25 | 19.35 | 19.59 | 18.91 | 17.56 | 17.51 |
| Jan 23, 2013 | 61.30 | 14.71 | 11.02 | 23.99 | 17.57 | 18.78 | 10.34 | 16.07 |
| Jan 25, 2012 | 21.66 | 14.09 | 15.11 | 12.83 | 15.52 | 22.54 | 10.81 | 15.29 |
| Feb 1, 2011 | — | 16.17 | 24.14 | 19.59 | 19.49 | 22.48 | 9.58 | 17.84 |
| Feb 3, 2010 | — | 33.40 | 40.66 | 29.60 | 16.09 | 13.44 | 9.56 | 16.33 |
| Feb 26, 2009 | — | 11.63 | 4.51 | 5.65 | 6.62 | 8.71 | 8.47 | 9.57 |
| Feb 29, 2008 | 4.79 | 15.99 | 12.54 | 11.89 | 15.45 | 17.07 | 14.15 | 16.61 |
| Feb 27, 2007 | 10.41 | 32.40 | 12.28 | 12.47 | 17.11 | 18.37 | 16.95 | 18.16 |
| Mar 31, 2006 | 14.30 | 22.62 | 17.17 | 12.82 | 21.07 | 20.71 | 17.45 | 18.76 |
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/E, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Jan 25, 2023 | 12.93 | 40.21 |
| Jan 26, 2022 | 16.08 | 57.31 |
| Jan 27, 2021 | 19.17 | 123.55 |
| Jan 29, 2020 | 9.65 | 39.03 |
| Jan 23, 2019 | 8.43 | 56.00 |
| Jan 24, 2018 | 11.64 | 55.16 |
| Jan 25, 2017 | 17.02 | 23.62 |
| Jan 27, 2016 | 8.68 | 33.10 |
| Jan 21, 2015 | 15.65 | 17.47 |
| Jan 22, 2014 | 19.65 | 18.85 |
| Jan 23, 2013 | 61.30 | 15.74 |
| Jan 25, 2012 | 21.66 | 15.20 |
| Feb 1, 2011 | — | 18.46 |
| Feb 3, 2010 | — | 17.22 |
| Feb 26, 2009 | — | 7.48 |
| Feb 29, 2008 | 4.79 | 15.28 |
| Feb 27, 2007 | 10.41 | 17.63 |
| Mar 31, 2006 | 14.30 | 20.11 |
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/E, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Jan 25, 2023 | 12.93 | 36.06 |
| Jan 26, 2022 | 16.08 | 35.59 |
| Jan 27, 2021 | 19.17 | — |
| Jan 29, 2020 | 9.65 | 43.95 |
| Jan 23, 2019 | 8.43 | 33.70 |
| Jan 24, 2018 | 11.64 | 29.83 |
| Jan 25, 2017 | 17.02 | 22.92 |
| Jan 27, 2016 | 8.68 | 22.89 |
| Jan 21, 2015 | 15.65 | 18.79 |
| Jan 22, 2014 | 19.65 | 19.13 |
| Jan 23, 2013 | 61.30 | 17.77 |
| Jan 25, 2012 | 21.66 | 15.75 |
| Feb 1, 2011 | — | 18.72 |
| Feb 3, 2010 | — | 19.17 |
| Feb 26, 2009 | — | 9.73 |
| Feb 29, 2008 | 4.79 | 16.93 |
| Feb 27, 2007 | 10.41 | 11.65 |
| Mar 31, 2006 | 14.30 | 50.62 |
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).