Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
United Rentals Inc., current price multiples
| United Rentals Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||
| Current share price (P) | $392.48 | ||||||||||||
| No. shares of common stock outstanding | 69,359,591 | ||||||||||||
| Growth rate (g) | 27.54% | ||||||||||||
| Earnings per share (EPS) | $30.35 | ||||||||||||
| Next year expected EPS | $38.71 | ||||||||||||
| Operating profit per share | $46.60 | ||||||||||||
| Sales per share | $167.85 | ||||||||||||
| Book value per share (BVPS) | $101.82 | ||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||
| Price to earnings (P/E) | 12.93 | — | 19.12 | 39.68 | 43.85 | 24.74 | 18.42 | 44.18 | 62.92 | 50.89 | |||
| Price to next year expected earnings | 10.14 | — | 15.29 | 37.21 | 43.20 | 21.51 | 12.84 | 43.55 | 64.07 | 48.91 | |||
| Price-earnings-growth (PEG) | 0.47 | — | 0.76 | 5.98 | 29.46 | 1.64 | 0.42 | 30.51 | — | 12.55 | |||
| Price to operating profit (P/OP) | 8.42 | — | 15.78 | 32.50 | 35.15 | 18.97 | 14.01 | 32.26 | 39.43 | 28.03 | |||
| Price to sales (P/S) | 2.34 | 2.52 | 3.36 | 6.05 | 8.18 | 3.67 | 1.38 | 2.61 | 3.27 | 2.54 | |||
| Price to book value (P/BV) | 3.85 | — | 10.59 | 8.14 | 14.86 | 7.58 | 15.52 | 3.51 | 8.31 | 7.76 | |||
Based on: 10-K (reporting date: 2022-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
United Rentals Inc., historical price multiples
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).
- Price to earnings (P/E) ratio
- The P/E ratio showed an overall upward trend from 2018 to 2020, increasing from 8.43 to 19.17. This sharp rise suggests increasing market expectations for earnings growth during this period. However, from 2020 onwards, the P/E ratio declined to 16.08 in 2021 and further to 12.93 in 2022, indicating a moderation in earnings expectations or an improvement in earnings relative to price.
- Price to operating profit (P/OP) ratio
- This ratio followed a similar pattern to the P/E ratio, rising steadily from 4.73 in 2018 to 9.79 in 2021, signaling growing investor valuation of operating profit. A slight decline to 8.42 in 2022 suggests some adjustment in investor sentiment or improved operating profitability, reflecting a partial correction after consistent increases.
- Price to sales (P/S) ratio
- The P/S ratio demonstrated consistent growth throughout the entire period, moving from 1.15 in 2018 to 2.34 in 2022. This continuous increase points to sustained growth in the company’s revenue valuation by the market, implying positive expectations for sales growth or higher sales quality.
- Price to book value (P/BV) ratio
- The P/BV ratio increased gradually from 2.71 in 2018 to 3.85 in 2022, indicating rising market valuation relative to book value. This trend reflects growing investor confidence in the company’s equity value and potential returns above net asset value, consistent with favorable perceptions about the company's balance sheet strength or profitability prospects.
Price to Earnings (P/E)
United Rentals Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 69,359,591 | 72,421,902 | 72,199,276 | 74,375,477 | 79,591,082 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 2,105) | 1,386) | 890) | 1,174) | 1,096) | |
| Earnings per share (EPS)2 | 30.35 | 19.14 | 12.33 | 15.78 | 13.77 | |
| Share price1, 3 | 392.48 | 307.76 | 236.27 | 152.26 | 116.02 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 12.93 | 16.08 | 19.17 | 9.65 | 8.43 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 19.15 | 16.82 | 36.80 | — | — | |
| Eaton Corp. plc | 27.93 | 27.77 | 37.46 | — | — | |
| GE Aerospace | — | — | 19.67 | — | — | |
| Honeywell International Inc. | 26.97 | 23.14 | 29.63 | — | — | |
| Lockheed Martin Corp. | 20.48 | 16.70 | 13.44 | — | — | |
| RTX Corp. | 27.59 | 36.79 | — | — | — | |
| P/E Ratio, Sector | ||||||
| Capital Goods | 40.21 | 57.31 | 123.55 | — | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 36.06 | 35.59 | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 2,105,000,000 ÷ 69,359,591 = 30.35
3 Closing price as at the filing date of United Rentals Inc. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 392.48 ÷ 30.35 = 12.93
5 Click competitor name to see calculations.
- Share Price Trend
- The share price of the company displayed a consistent upward trajectory over the five-year period. Starting at $116.02 in 2018, it rose steadily each year, reaching $152.26 in 2019, $236.27 in 2020, $307.76 in 2021, and culminating at $392.48 by the end of 2022. This indicates strong market confidence and increasing valuation over time.
- Earnings Per Share (EPS) Trend
- The earnings per share exhibited some fluctuation during the period. EPS increased from $13.77 in 2018 to $15.78 in 2019, then declined to $12.33 in 2020. However, it recovered significantly in the subsequent years, rising to $19.14 in 2021 and further to $30.35 in 2022. This pattern suggests a temporary setback in 2020 followed by substantial growth in profitability.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio started at a relatively low level of 8.43 in 2018 and rose to 9.65 in 2019, before experiencing a sharp increase to 19.17 in 2020. This was followed by a decline to 16.08 in 2021 and further down to 12.93 in 2022. The initial increase indicates a rising market valuation relative to earnings during 2020, possibly reflecting market optimism or a lag in earnings recovery. The subsequent decrease in P/E suggests earnings growth outpaced share price increases in the later years.
- Overall Insights
- The data portrays a company experiencing strong growth in market value and earnings over the long term. While 2020 saw a dip in profitability, likely due to external challenges, the company rebounded effectively in 2021 and 2022. The decline in P/E ratio from its peak in 2020 to 2022 indicates that earnings growth was strong enough to temper valuation multiples, reflecting improved fundamental performance relative to the share price.
Price to Operating Profit (P/OP)
United Rentals Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 69,359,591 | 72,421,902 | 72,199,276 | 74,375,477 | 79,591,082 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 3,232) | 2,277) | 1,800) | 2,152) | 1,951) | |
| Operating profit per share2 | 46.60 | 31.44 | 24.93 | 28.93 | 24.51 | |
| Share price1, 3 | 392.48 | 307.76 | 236.27 | 152.26 | 116.02 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 8.42 | 9.79 | 9.48 | 5.26 | 4.73 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 16.25 | 15.87 | 24.23 | — | — | |
| Eaton Corp. plc | 22.78 | 19.33 | 25.83 | — | — | |
| GE Aerospace | 19.88 | 17.46 | 25.64 | — | — | |
| Honeywell International Inc. | 20.84 | 20.68 | 24.86 | — | — | |
| Lockheed Martin Corp. | 14.06 | 11.56 | 10.63 | — | — | |
| RTX Corp. | 26.48 | 28.68 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Capital Goods | 25.20 | 22.96 | 70.31 | — | — | |
| P/OP Ratio, Industry | ||||||
| Industrials | 19.86 | 22.38 | 68.31 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 3,232,000,000 ÷ 69,359,591 = 46.60
3 Closing price as at the filing date of United Rentals Inc. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 392.48 ÷ 46.60 = 8.42
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited consistent growth over the analyzed period. Starting at $116.02 in 2018, it increased steadily each year, reaching $392.48 by the end of 2022. This represents more than a threefold increase within five years, indicating strong market confidence and positive valuation trends for the company.
- Operating Profit Per Share Trend
- Operating profit per share showed fluctuation but generally trended upward. It started at $24.51 in 2018 and increased to $28.93 in 2019. There was a dip to $24.93 in 2020, which might reflect external challenges during that year. Subsequently, it recovered and improved to $31.44 in 2021 and significantly jumped to $46.60 in 2022. The sharp rise in 2022 suggests improved operational efficiency or higher profitability per share during that year.
- Price to Operating Profit (P/OP) Ratio Trend
- The P/OP ratio showed an overall increasing trend from 4.73 in 2018 to a peak of 9.79 in 2021, before declining slightly to 8.42 in 2022. The rising P/OP ratio up to 2021 indicates that the share price growth outpaced the growth in operating profit per share, potentially reflecting heightened market expectations. The moderate decrease in 2022, coupled with a substantial increase in operating profit per share, may suggest a rebalancing between market price and operating profitability.
Price to Sales (P/S)
United Rentals Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 69,359,591 | 72,421,902 | 72,199,276 | 74,375,477 | 79,591,082 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 11,642) | 9,716) | 8,530) | 9,351) | 8,047) | |
| Sales per share2 | 167.85 | 134.16 | 118.15 | 125.73 | 101.10 | |
| Share price1, 3 | 392.48 | 307.76 | 236.27 | 152.26 | 116.02 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.34 | 2.29 | 2.00 | 1.21 | 1.15 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Boeing Co. | 1.90 | 1.87 | 1.96 | — | — | |
| Caterpillar Inc. | 2.27 | 2.26 | 2.83 | — | — | |
| Eaton Corp. plc | 3.31 | 3.03 | 2.96 | — | — | |
| GE Aerospace | 1.20 | 1.50 | 1.41 | — | — | |
| Honeywell International Inc. | 3.78 | 3.73 | 4.34 | — | — | |
| Lockheed Martin Corp. | 1.78 | 1.57 | 1.40 | — | — | |
| RTX Corp. | 2.14 | 2.21 | 1.95 | — | — | |
| P/S Ratio, Sector | ||||||
| Capital Goods | 2.09 | 2.09 | 2.11 | — | — | |
| P/S Ratio, Industry | ||||||
| Industrials | 1.80 | 2.07 | 2.14 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 11,642,000,000 ÷ 69,359,591 = 167.85
3 Closing price as at the filing date of United Rentals Inc. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 392.48 ÷ 167.85 = 2.34
5 Click competitor name to see calculations.
- Share Price Trend
- The share price of the company exhibits a consistent upward trend over the five-year period. Starting from $116.02 at the end of 2018, it increased steadily each year, reaching $392.48 by the end of 2022. This represents a significant increase in market valuation, more than tripling over the observed timeframe.
- Sales Per Share Analysis
- Sales per share experienced growth overall during the period but with some fluctuations. After increasing from $101.10 in 2018 to $125.73 in 2019, a decline is observed in 2020 to $118.15. Subsequently, sales per share resumed growth, rising to $134.16 in 2021 and further accelerating to $167.85 in 2022. This suggests a recovery and expansion of sales after a mid-period setback.
- Price-to-Sales (P/S) Ratio Evaluation
- The P/S ratio displayed a rising pattern throughout the period. From a relatively low 1.15 in 2018, it increased slightly to 1.21 in 2019, followed by a sharper rise to 2.00 in 2020. The upward momentum continued in 2021 and 2022, with the ratio reaching 2.29 and 2.34 respectively. This trend indicates that the market began valuing the company's sales stream more highly over time, reflecting enhanced investor confidence or possibly an expectation of future growth or profitability improvements.
- Overall Insights
- The combined analysis of share price, sales per share, and price-to-sales ratio shows a company experiencing robust market appreciation alongside growth and recovery in sales metrics. The surge in the P/S ratio alongside share price growth suggests increasing market optimism about the company’s revenue generation potential relative to its share price. Despite a temporary dip in sales per share around 2020, subsequent gains imply operational resilience and an effective response to challenges during that period.
Price to Book Value (P/BV)
United Rentals Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 69,359,591 | 72,421,902 | 72,199,276 | 74,375,477 | 79,591,082 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 7,062) | 5,991) | 4,545) | 3,830) | 3,403) | |
| Book value per share (BVPS)2 | 101.82 | 82.72 | 62.95 | 51.50 | 42.76 | |
| Share price1, 3 | 392.48 | 307.76 | 236.27 | 152.26 | 116.02 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.85 | 3.72 | 3.75 | 2.96 | 2.71 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 8.09 | 6.62 | 7.20 | — | — | |
| Eaton Corp. plc | 4.04 | 3.63 | 3.54 | — | — | |
| GE Aerospace | 2.43 | 2.64 | 2.89 | — | — | |
| Honeywell International Inc. | 8.02 | 6.91 | 8.07 | — | — | |
| Lockheed Martin Corp. | 12.67 | 9.62 | 15.27 | — | — | |
| RTX Corp. | 1.97 | 1.95 | 1.53 | — | — | |
| P/BV Ratio, Sector | ||||||
| Capital Goods | 5.31 | 4.77 | 5.05 | — | — | |
| P/BV Ratio, Industry | ||||||
| Industrials | 5.50 | 5.44 | 5.89 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,062,000,000 ÷ 69,359,591 = 101.82
3 Closing price as at the filing date of United Rentals Inc. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 392.48 ÷ 101.82 = 3.85
5 Click competitor name to see calculations.
The financial data presents a clear positive trend in the market valuation and book value of the company over the five-year period ending December 31, 2022.
- Share Price
- The share price shows a substantial and consistent growth, rising from $116.02 in 2018 to $392.48 in 2022. This represents more than a threefold increase, indicating strong market confidence and possibly improved financial performance or growth prospects perceived by investors during this period.
- Book Value Per Share (BVPS)
- BVPS has also increased steadily from $42.76 in 2018 to $101.82 in 2022. This near doubling of book value per share suggests that the company has effectively grown its net asset base on a per-share basis, reflecting potentially solid earnings retention, asset growth, or a combination of these factors.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio starts at 2.71 in 2018 and rises to 3.85 by 2022. This ratio exhibits a general upward trend with a slight dip between 2020 and 2021, indicating that the market is willing to pay increasingly higher premiums over the company's book value. The elevated P/BV ratios suggest strong investor expectations for future growth or profitability beyond the current book value.
Overall, the data reveals a robust upward trend in both the company's intrinsic value and market valuation, accompanied by a growing premium assigned by the market. This pattern indicates sustained confidence in the company's long-term prospects and value creation capabilities throughout the analyzed period.