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United Rentals, Inc. – General Rental Centers
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,169 rental locations in North America and 11 in Europe. In North America, the company operates in 49 states and every Canadian province. The company's approximately 18,900 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers approximately 4,000 classes of equipment for rent with a total original cost of $14.13 billion. United Rentals is a member of the Standard & Poor's 500 Index, the Barron's 400 Index and the Russell 3000 Index® and is headquartered in Stamford, Conn.
Analysis Results
Intrinsic Value $1,332.66
Latest Price $284.84
Relative Value 79% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.62 2.44
2023 3.24 2.82
2024 4.02 3.26
2025 4.97 3.76
2026 6.16 4.34
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 120 billion. This corresponds to a present value of 78.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.6 billion. Adding in the terminal value gives a total present value of 95.4 billion.

There are presently 71.6 million outstanding shares, so the intrinsic value per share is 1332.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,302,000,000
Current Cash 288,000,000
Current Liabilities 5,206,000,000
Current Debt 1,812,000,000
Non-Cash Working Capital (NCWC) 620,000,000
Change in NCWC -9,000,000
EBIT 4,564,000,000
Tax Provision 920,000,000
Depreciation and Amortization 3,966,000,000
Capital Expenditure -6,396,000,000
Unlevered Free Cash Flow 987,708,559
Current Assets 2,017,000,000
Current Cash 202,000,000
Current Liabilities 1,890,000,000
Current Debt 704,000,000
Non-Cash Working Capital (NCWC) 629,000,000
Change in NCWC 40,000,000
EBIT 1,817,000,000
Tax Provision 249,000,000
Depreciation and Amortization 1,988,000,000
Capital Expenditure -1,158,000,000
Unlevered Free Cash Flow 2,289,780,509
Current Assets 1,842,000,000
Current Cash 52,000,000
Current Liabilities 2,198,000,000
Current Debt 997,000,000
Non-Cash Working Capital (NCWC) 589,000,000
Change in NCWC 84,000,000
EBIT 2,171,000,000
Tax Provision 340,000,000
Depreciation and Amortization 2,038,000,000
Capital Expenditure -2,350,000,000
Unlevered Free Cash Flow 1,455,457,067
Current Assets 1,761,000,000
Current Cash 43,000,000
Current Liabilities 2,116,000,000
Current Debt 903,000,000
Non-Cash Working Capital (NCWC) 505,000,000
Change in NCWC 30,000,000
EBIT 2,018,000,000
Tax Provision 380,000,000
Depreciation and Amortization 1,671,000,000
Capital Expenditure -2,291,000,000
Unlevered Free Cash Flow 908,460,704
Current Assets 1,772,000,000
Current Cash 352,000,000
Current Liabilities 1,668,000,000
Current Debt 723,000,000
Non-Cash Working Capital (NCWC) 475,000,000
Change in NCWC 13,000,000
EBIT 1,607,000,000
Tax Provision -298,000,000
Depreciation and Amortization 1,383,000,000
Capital Expenditure -1,889,000,000
Unlevered Free Cash Flow 1,114,000,000
Current Assets 1,361,000,000
Current Cash 312,000,000
Current Liabilities 1,184,000,000
Current Debt 597,000,000
Non-Cash Working Capital (NCWC) 462,000,000
Change in NCWC -27,000,000
EBIT 1,429,000,000
Tax Provision 343,000,000
Depreciation and Amortization 1,245,000,000
Capital Expenditure -1,339,000,000
Unlevered Free Cash Flow 768,784,378
Current Assets 1,294,000,000
Current Cash 179,000,000
Current Liabilities 1,233,000,000
Current Debt 607,000,000
Non-Cash Working Capital (NCWC) 489,000,000
Change in NCWC -39,000,000
EBIT 1,498,000,000
Tax Provision 378,000,000
Depreciation and Amortization 1,244,000,000
Capital Expenditure -1,636,000,000
Unlevered Free Cash Flow 479,000,000
Current Assets 1,546,000,000
Current Cash 158,000,000
Current Liabilities 1,478,000,000
Current Debt 618,000,000
Non-Cash Working Capital (NCWC) 528,000,000
Change in NCWC 23,000,000
EBIT 1,401,000,000
Tax Provision 310,000,000
Depreciation and Amortization 1,194,000,000
Capital Expenditure -1,821,000,000
Unlevered Free Cash Flow 286,047,058
Current Assets 1,362,000,000
Current Cash 175,000,000
Current Liabilities 1,286,000,000
Current Debt 604,000,000
Non-Cash Working Capital (NCWC) 505,000,000
Change in NCWC -11,000,000
EBIT 1,099,000,000
Tax Provision 218,000,000
Depreciation and Amortization 1,098,000,000
Capital Expenditure -1,684,000,000
Unlevered Free Cash Flow 105,996,694
Current Assets 1,343,000,000
Current Cash 106,000,000
Current Liabilities 1,351,000,000
Current Debt 630,000,000
Non-Cash Working Capital (NCWC) 516,000,000
Change in NCWC 298,000,000
EBIT 801,000,000
Tax Provision 13,000,000
Depreciation and Amortization 897,000,000
Capital Expenditure -1,369,000,000
Unlevered Free Cash Flow 508,670,454

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