Latest Ratios: P/E Ratio 28.5x · EV/EBITDA 12.0x · ROE 28.4%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $68.8B | $52.3B | $46.9B | $39.4B | $25.2B | $24.2B | $16.9B | $13.0B | $8.6B | $14.7B | $9.3B |
| Enterprise Value | $84.8B | $68.3B | $61.2B | $51.7B | $37.3B | $34.6B | $27.1B | $25.0B | $20.3B | $23.8B | $16.7B |
| P/E Ratio → | 28.45 | 20.96 | 18.21 | 16.25 | 11.98 | 17.46 | 19.01 | 11.04 | 7.81 | 10.93 | 16.37 |
| P/S Ratio | 4.28 | 3.25 | 3.06 | 2.75 | 2.17 | 2.49 | 1.98 | 1.39 | 1.06 | 2.22 | 1.61 |
| P/B Ratio | 7.91 | 5.83 | 5.44 | 4.85 | 3.57 | 4.04 | 3.72 | 3.38 | 2.52 | 4.74 | 5.62 |
| P/FCF | 103.96 | 78.98 | 111.92 | 62.14 | 33.95 | 49.28 | 11.28 | 19.23 | 15.23 | 43.15 | 15.10 |
| P/OCF | 13.26 | 10.07 | 10.32 | 8.38 | 5.69 | 6.56 | 6.36 | 4.29 | 3.00 | 6.60 | 4.75 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.24 | 3.99 | 3.61 | 3.21 | 3.56 | 3.18 | 2.68 | 2.52 | 3.58 | 2.91 |
| EV / EBITDA | 11.98 | 9.64 | 8.78 | 7.79 | 6.85 | 8.10 | 7.13 | 5.95 | 5.49 | 7.91 | 6.20 |
| EV / EBIT | 21.35 | 16.85 | 15.01 | 13.44 | 11.50 | 15.22 | 15.00 | 11.58 | 10.36 | 16.30 | 12.68 |
| EV / FCF | — | 103.17 | 146.12 | 81.54 | 50.26 | 70.39 | 18.08 | 37.16 | 36.06 | 69.80 | 27.28 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.4% | 35.4% | 37.2% | 37.6% | 39.8% | 36.0% | 33.2% | 34.9% | 38.0% | 38.1% | 37.8% |
| Operating Margin | 24.7% | 24.7% | 26.5% | 26.9% | 27.8% | 23.6% | 21.7% | 23.2% | 25.1% | 24.5% | 25.3% |
| Net Profit Margin | 15.5% | 15.5% | 16.8% | 16.9% | 18.1% | 14.3% | 10.4% | 12.6% | 13.6% | 20.3% | 9.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 28.4% | 28.4% | 30.7% | 31.9% | 32.3% | 26.3% | 21.3% | 32.5% | 33.7% | 56.6% | 36.2% |
| ROA | 8.6% | 8.6% | 9.6% | 9.7% | 9.5% | 7.3% | 4.8% | 6.3% | 6.6% | 10.0% | 4.7% |
| ROIC | 12.4% | 12.4% | 14.1% | 14.6% | 13.6% | 11.1% | 9.1% | 10.5% | 11.1% | 11.4% | 11.8% |
| ROCE | 15.6% | 15.6% | 17.4% | 17.6% | 16.4% | 13.6% | 11.3% | 13.2% | 13.7% | 13.4% | 13.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.84 | 1.84 | 1.72 | 1.56 | 1.73 | 1.75 | 2.29 | 3.17 | 3.45 | 3.04 | 4.73 |
| Debt / EBITDA | 2.33 | 2.33 | 2.12 | 1.91 | 2.24 | 2.46 | 2.74 | 2.88 | 3.18 | 3.14 | 2.88 |
| Net Debt / Equity | — | 1.79 | 1.66 | 1.51 | 1.72 | 1.73 | 2.25 | 3.16 | 3.44 | 2.93 | 4.54 |
| Net Debt / EBITDA | 2.26 | 2.26 | 2.06 | 1.85 | 2.22 | 2.43 | 2.68 | 2.87 | 3.17 | 3.02 | 2.77 |
| Debt / FCF | — | 24.20 | 34.21 | 19.40 | 16.31 | 21.11 | 6.80 | 17.93 | 20.83 | 26.65 | 12.18 |
| Interest Coverage | 5.66 | 5.66 | 5.90 | 6.06 | 7.30 | 5.35 | 2.70 | 3.34 | 4.07 | 3.15 | 2.59 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.94 | 0.94 | 0.98 | 0.81 | 1.11 | 0.83 | 1.07 | 0.84 | 0.83 | 1.06 | 1.15 |
| Quick Ratio | 0.88 | 0.88 | 0.92 | 0.75 | 1.02 | 0.76 | 1.00 | 0.78 | 0.78 | 1.02 | 1.09 |
| Cash Ratio | 0.12 | 0.12 | 0.14 | 0.10 | 0.04 | 0.06 | 0.11 | 0.02 | 0.02 | 0.21 | 0.26 |
| Asset Turnover | — | 0.54 | 0.54 | 0.56 | 0.48 | 0.48 | 0.48 | 0.49 | 0.44 | 0.44 | 0.48 |
| Inventory Turnover | 43.30 | 43.30 | 48.16 | 43.66 | 30.22 | 37.93 | 45.58 | 50.73 | 45.79 | 54.84 | 52.72 |
| Days Sales Outstanding | — | 56.91 | 57.32 | 56.92 | 62.83 | 63.11 | 56.44 | 61.71 | 70.08 | 67.77 | 58.28 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.9% | 0.9% | 1.0% | — | — | — | — | — | — | — |
| Payout Ratio | 18.6% | 18.6% | 16.9% | 16.7% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 4.8% | 5.5% | 6.2% | 8.3% | 5.7% | 5.3% | 9.1% | 12.8% | 9.2% | 6.1% |
| FCF Yield | 1.0% | 1.3% | 0.9% | 1.6% | 2.9% | 2.0% | 8.9% | 5.2% | 6.6% | 2.3% | 6.6% |
| Buyback Yield | 2.9% | 3.8% | 3.4% | 2.7% | 4.2% | 0.1% | 1.7% | 6.7% | 9.5% | 0.4% | 5.7% |
| Total Shareholder Yield | 3.5% | 4.7% | 4.3% | 3.7% | 4.2% | 0.1% | 1.7% | 6.7% | 9.5% | 0.4% | 5.7% |
| Shares Outstanding | — | $65M | $67M | $69M | $71M | $73M | $73M | $78M | $84M | $86M | $88M |
Cyclical capital intensity
According to current market data, URI trades at a forward P/E of 23.84, which appears to command a premium valuation relative to broader industrial peers, suggesting that investors are pricing in the company's dominant scale and its strategic pivot toward less cyclical, high-margin specialty rental segments.
The current P/E multiple of 29.05 on a trailing basis indicates that the market expects sustained earnings growth despite the recent deceleration in revenue. Investors should monitor whether this valuation remains justified if the company's ability to pass through inflationary costs to customers begins to wane in a cooling industrial environment.
Based on reported figures, URI's ROIC has trended between 2.7% and 3.9% over the last ten quarters, a level that appears modest given the company's heavy reliance on continuous fleet investment to maintain its competitive moat in the industrial and infrastructure rental markets.
The relatively low ROIC suggests that while the company is a dominant operator, the capital-intensive nature of the business model acts as a structural drag on returns. Future compounding of shareholder value will likely depend on management's ability to optimize fleet utilization rather than simply expanding the asset base through further debt-funded acquisitions.
As evidenced by the provided financial data, URI's cash conversion cycle has fluctuated between 14 and 33 days over the past ten quarters, indicating that the company maintains a disciplined approach to managing its receivables and payables despite the inherent complexity of its large-scale project-based revenue model.
The stability in DSO and DPO suggests that URI retains significant leverage over its suppliers and customers, which is a critical component of its operational efficiency. However, investors should watch for any sudden spikes in the CCC, as this could signal a deterioration in the credit quality of its industrial client base.
According to recent quarterly filings, URI's current ratio has consistently remained below 1.0, reaching 0.80 in 2026Q1, which highlights a strategic reliance on revolving credit facilities and operational cash flow to meet short-term obligations rather than maintaining substantial idle cash reserves on the balance sheet.
While this liquidity profile is common in capital-intensive rental businesses, it leaves the company with limited margin for error during periods of severe economic stress. The reliance on external financing for fleet renewal warrants close monitoring, as any disruption in credit markets could immediately constrain the company's operational flexibility.
The P/E ratio is frequently misapplied to URI's business model because it fails to account for the massive non-cash depreciation charges that characterize the heavy equipment rental industry, often leading to an inaccurate perception of the company's true earnings power and cash-generating capacity.
Analysts should prioritize EV/EBITDA or P/FCF metrics, as these better reflect the underlying cash flow generation that is masked by accounting depreciation. Relying solely on P/E ratios may lead to an underestimation of the company's ability to harvest cash during downturns by simply curtailing capital expenditures.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying URI stock.
United Rentals, Inc.'s current P/E ratio is 28.5x. The historical average is 24.3x. This places it at the 91th percentile of its historical range.
United Rentals, Inc.'s current EV/EBITDA is 12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.4x.
United Rentals, Inc.'s return on equity (ROE) is 28.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 32.5%.
Based on historical data, United Rentals, Inc. is trading at a P/E of 28.5x. This is at the 91th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
United Rentals, Inc.'s current dividend yield is 0.65% with a payout ratio of 18.6%.
United Rentals, Inc. has 35.4% gross margin and 24.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
United Rentals, Inc.'s Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.