Price to Sales (P/S)
since 2005
Calculation
United Rentals Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 25, 2023 | 2.34 | = | 392.48 | ÷ | 167.85 | 167.85 | = | 11,642 | ÷ | 69,359,591 | |
| Jan 26, 2022 | 2.29 | = | 307.76 | ÷ | 134.16 | 134.16 | = | 9,716 | ÷ | 72,421,902 | |
| Jan 27, 2021 | 2.00 | = | 236.27 | ÷ | 118.15 | 118.15 | = | 8,530 | ÷ | 72,199,276 | |
| Jan 29, 2020 | 1.21 | = | 152.26 | ÷ | 125.73 | 125.73 | = | 9,351 | ÷ | 74,375,477 | |
| Jan 23, 2019 | 1.15 | = | 116.02 | ÷ | 101.10 | 101.10 | = | 8,047 | ÷ | 79,591,082 | |
| Jan 24, 2018 | 2.36 | = | 185.52 | ÷ | 78.66 | 78.66 | = | 6,641 | ÷ | 84,427,665 | |
| Jan 25, 2017 | 1.67 | = | 114.26 | ÷ | 68.34 | 68.34 | = | 5,762 | ÷ | 84,310,531 | |
| Jan 27, 2016 | 0.87 | = | 55.84 | ÷ | 63.94 | 63.94 | = | 5,817 | ÷ | 90,970,229 | |
| Jan 21, 2015 | 1.49 | = | 87.56 | ÷ | 58.90 | 58.90 | = | 5,685 | ÷ | 96,520,626 | |
| Jan 22, 2014 | 1.53 | = | 81.59 | ÷ | 53.16 | 53.16 | = | 4,955 | ÷ | 93,217,882 | |
| Jan 23, 2013 | 1.12 | = | 49.43 | ÷ | 44.26 | 44.26 | = | 4,117 | ÷ | 93,013,431 | |
| Jan 25, 2012 | 0.84 | = | 34.77 | ÷ | 41.50 | 41.50 | = | 2,611 | ÷ | 62,909,022 | |
| Feb 1, 2011 | 0.75 | = | 27.53 | ÷ | 36.90 | 36.90 | = | 2,237 | ÷ | 60,629,338 | |
| Feb 3, 2010 | 0.21 | = | 8.31 | ÷ | 39.19 | 39.19 | = | 2,358 | ÷ | 60,167,975 | |
| Feb 26, 2009 | 0.08 | = | 4.19 | ÷ | 54.45 | 54.45 | = | 3,267 | ÷ | 60,002,403 | |
| Feb 29, 2008 | 0.47 | = | 20.10 | ÷ | 43.22 | 43.22 | = | 3,731 | ÷ | 86,324,297 | |
| Feb 27, 2007 | 0.64 | = | 28.71 | ÷ | 44.80 | 44.80 | = | 3,640 | ÷ | 81,244,003 | |
| Mar 31, 2006 | 0.75 | = | 34.50 | ÷ | 45.96 | 45.96 | = | 3,563 | ÷ | 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-Sales (P/S) ratio exhibits a trajectory characterized by a severe early contraction followed by a sustained, long-term expansion in valuation multiples. Over the period from 2006 to 2023, the market's valuation of revenue transitioned from a low-multiple regime to a significantly higher baseline, coinciding with substantial growth in sales per share.
- Valuation Contraction and Bottoming (2006–2010)
- A sharp decline in the P/S ratio is observed between 2006 and 2009, falling from 0.75 to a minimum of 0.08. This collapse was driven primarily by a precipitous drop in share price, which fell from $34.50 to $4.19, despite sales per share remaining relatively resilient and actually increasing to $54.45 by February 2009. This period represents a significant decoupling where share price depreciation far outpaced revenue performance.
- Recovery and Multiple Expansion (2011–2018)
- A period of steady recovery began in 2011, with the P/S ratio returning to 0.75 and continuing an upward trend. By 2014, the ratio exceeded 1.50 for the first time, signaling a shift in investor sentiment and a higher premium assigned to each dollar of sales. This expansion peaked in January 2018, when the P/S ratio reached 2.36, driven by a share price increase to $185.52 and a corresponding rise in sales per share to $78.66.
- Volatility and Scaling (2019–2023)
- Following a correction in 2019 where the P/S ratio dropped to 1.15, a secondary and more aggressive growth phase occurred. From 2020 to 2023, the P/S ratio climbed consistently from 1.21 to 2.34. This latter phase is distinguished by a massive increase in fundamental scale; sales per share grew from $101.10 in 2019 to $167.85 in 2023. The simultaneous rise in both the P/S multiple and sales per share indicates that the market rewarded the company with both higher revenue growth and a higher valuation multiple.
- Long-term Comparative Analysis
- The P/S ratio demonstrates a structural shift over the 17-year horizon. While the ratio spent the first seven years of the observed period predominantly below 1.0, it spent the final decade largely above 1.0. The final recorded P/S ratio of 2.34 in 2023 is nearly 30 times the 2009 low, reflecting a total transformation in market valuation relative to top-line performance.
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Comparison to Competitors
United Rentals Inc., P/S, 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 | 2.34 | 1.90 | 2.27 | 3.31 | 1.20 | 3.78 | 1.78 | 2.14 |
| Jan 26, 2022 | 2.29 | 1.87 | 2.26 | 3.03 | 1.50 | 3.73 | 1.57 | 2.21 |
| Jan 27, 2021 | 2.00 | 1.96 | 2.83 | 2.96 | 1.41 | 4.34 | 1.40 | 1.95 |
| Jan 29, 2020 | 1.21 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Jan 23, 2019 | 1.15 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Jan 24, 2018 | 2.36 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Jan 25, 2017 | 1.67 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Jan 27, 2016 | 0.87 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Jan 21, 2015 | 1.49 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Jan 22, 2014 | 1.53 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Jan 23, 2013 | 1.12 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Jan 25, 2012 | 0.84 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Feb 1, 2011 | 0.75 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Feb 3, 2010 | 0.21 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Feb 26, 2009 | 0.08 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Feb 29, 2008 | 0.47 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Feb 27, 2007 | 0.64 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Mar 31, 2006 | 0.75 | 1.06 | 1.44 | 0.93 | 3.72 | 1.24 | 0.86 | 1.36 |
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/S, long-term trends, comparison to sector (capital goods)
| United Rentals Inc. | Capital Goods | |
|---|---|---|
| Jan 25, 2023 | 2.34 | 2.09 |
| Jan 26, 2022 | 2.29 | 2.09 |
| Jan 27, 2021 | 2.00 | 2.11 |
| Jan 29, 2020 | 1.21 | 1.92 |
| Jan 23, 2019 | 1.15 | 1.62 |
| Jan 24, 2018 | 2.36 | 1.82 |
| Jan 25, 2017 | 1.67 | 1.76 |
| Jan 27, 2016 | 0.87 | 1.55 |
| Jan 21, 2015 | 1.49 | 1.66 |
| Jan 22, 2014 | 1.53 | 1.66 |
| Jan 23, 2013 | 1.12 | 1.37 |
| Jan 25, 2012 | 0.84 | 1.33 |
| Feb 1, 2011 | 0.75 | 1.45 |
| Feb 3, 2010 | 0.21 | 1.12 |
| Feb 26, 2009 | 0.08 | 0.71 |
| Feb 29, 2008 | 0.47 | 1.76 |
| Feb 27, 2007 | 0.64 | 1.91 |
| Mar 31, 2006 | 0.75 | 1.95 |
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).
Comparison to Industry (Industrials)
United Rentals Inc., P/S, long-term trends, comparison to industry (industrials)
| United Rentals Inc. | Industrials | |
|---|---|---|
| Jan 25, 2023 | 2.34 | 1.80 |
| Jan 26, 2022 | 2.29 | 2.07 |
| Jan 27, 2021 | 2.00 | 2.14 |
| Jan 29, 2020 | 1.21 | 1.77 |
| Jan 23, 2019 | 1.15 | 1.58 |
| Jan 24, 2018 | 2.36 | 1.71 |
| Jan 25, 2017 | 1.67 | 1.68 |
| Jan 27, 2016 | 0.87 | 1.48 |
| Jan 21, 2015 | 1.49 | 1.65 |
| Jan 22, 2014 | 1.53 | 1.57 |
| Jan 23, 2013 | 1.12 | 1.31 |
| Jan 25, 2012 | 0.84 | 1.27 |
| Feb 1, 2011 | 0.75 | 1.39 |
| Feb 3, 2010 | 0.21 | 1.09 |
| Feb 26, 2009 | 0.08 | 0.71 |
| Feb 29, 2008 | 0.47 | 1.62 |
| Feb 27, 2007 | 0.64 | 1.73 |
| Mar 31, 2006 | 0.75 | 1.80 |
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).