DCF Tool

URI

United Rentals, Inc. – General Rental Centers
as north america’s largest equipment rental company, with 880+ stores in the united states and canada, we serve construction and industrial companies, utilities, municipalities, homeowners, and communities, with the goal of fulfilling customer needs and surpassing expectations. we go beyond equipment. we are the world’s largest fleet of problem solvers, with best-in-class specialty solutions, safety training and 24/7 support to empower your success. for more updates - follow us on twitter: www.unitedrentals.com/twitter like us on facebook: www.unitedrentals.com/facebook join us on google+: www.unitedrentals.com/google see more videos: www.unitedrentals.com/youtube
Analysis Results
Intrinsic Value $370.66
Latest Price $686.19
Relative Value 85% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.2%, 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)
2024 1.77 1.59
2025 1.98 1.61
2026 2.22 1.62
2027 2.5 1.64
2028 2.8 1.66
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.5 billion. This corresponds to a present value of 16.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.12 billion. Adding in the terminal value gives a total present value of 24.9 billion.

There are presently 67.2 million outstanding shares, so the intrinsic value per share is 370.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,933,000,000
Current Cash 363,000,000
Current Liabilities 3,637,000,000
Current Debt 1,465,000,000
Non-Cash Working Capital (NCWC) 398,000,000
Change in NCWC 65,000,000
EBIT 3,855,000,000
Tax Provision 787,000,000
Depreciation and Amortization 2,781,000,000
Capital Expenditure -4,070,000,000
Unlevered Free Cash Flow 1,686,158,829
Current Assets 2,723,000,000
Current Cash 106,000,000
Current Liabilities 2,445,000,000
Current Debt 161,000,000
Non-Cash Working Capital (NCWC) 333,000,000
Change in NCWC 23,000,000
EBIT 3,232,000,000
Tax Provision 697,000,000
Depreciation and Amortization 2,217,000,000
Capital Expenditure -3,690,000,000
Unlevered Free Cash Flow 978,037,116
Current Assets 2,151,000,000
Current Cash 144,000,000
Current Liabilities 2,603,000,000
Current Debt 906,000,000
Non-Cash Working Capital (NCWC) 310,000,000
Change in NCWC -319,000,000
EBIT 2,282,000,000
Tax Provision 460,000,000
Depreciation and Amortization 1,983,000,000
Capital Expenditure -3,198,000,000
Unlevered Free Cash Flow 179,354,279
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.