Is It Too Late To Consider United Rentals (URI) After Its Strong Multi Year Share Price Run?

• If you are wondering whether United Rentals is still good value after a strong multi year run, this article walks through what the current share price could be implying about the business.
• The stock last closed at US$911.16, with returns of 10.1% over the past 30 days, 19.4% over 1 year and a very large gain over 5 years. This naturally raises questions about how much upside or downside might be left.
• Recent moves have come alongside ongoing attention on large scale construction and infrastructure activity in the United States, which keeps equipment rental businesses in focus for many investors. Broader discussions around capital spending and financing conditions have also kept the sector on many watchlists, even when short term returns such as the 1.1% decline over the past week have been more muted.
• On our checklist based valuation framework, United Rentals scores 5 out of 6 for value, and you can see the breakdown of that score in our valuation checks. Next, we will walk through the main methods behind that number before finishing with a more holistic way to think about what the market is really pricing in.

United Rentals delivered 19.4% returns over the last year. See how this stacks up to the rest of the Trade Distributors industry.

Approach 1: United Rentals Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes estimates of the cash a company may generate in the future and discounts those amounts back to today using a required rate of return. The idea is to work out what those future cash flows are worth in present dollar terms.

For United Rentals, the latest twelve month free cash flow is about $1.93b. Analysts provide explicit free cash flow estimates out to 2028, with Simply Wall St extending those projections further. In this model, projected free cash flow reaches $5.50b in 2035, with the 10 year path between 2026 and 2035 based on a mix of analyst inputs and extrapolated figures.

When all those cash flows are discounted back and combined with a terminal value, the DCF model arrives at an estimated intrinsic value of about $1,143.26 per share. Compared with the recent share price of US$911.16, this suggests the stock is around 20.3% undervalued on this set of assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests United Rentals is undervalued by 20.3%. Track this in your watchlist or portfolio, or discover 887 more undervalued stocks based on cash flows.

URI Discounted Cash Flow as at Jan 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for United Rentals.

Approach 2: United Rentals Price vs Earnings

For a profitable company like United Rentals, the P/E ratio is a straightforward way to see what investors are currently paying for each dollar of earnings. It connects directly to the bottom line, which is usually what drives long term returns for shareholders.

What counts as a “normal” or “fair” P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth and lower perceived risk often support a higher multiple, while slower growth or higher risk tend to point to a lower one.

United Rentals currently trades on a P/E of 22.92x. That sits close to the Trade Distributors industry average P/E of 22.88x and is a bit below the peer group average of 24.90x. Simply Wall St’s Fair Ratio for United Rentals is 31.41x, which is its view of the P/E you might expect given factors such as earnings growth, profit margins, market cap, industry and company specific risks.

The Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for these company specific characteristics rather than assuming one multiple fits all. With the Fair Ratio above the current 22.92x, this framework points to United Rentals looking undervalued on a P/E basis.

Result: UNDERVALUED

NYSE:URI P/E Ratio as at Jan 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1427 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your United Rentals Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply the story you believe about a company, linked directly to numbers like fair value, future revenue, earnings and margins.

On Simply Wall St, Narratives sit on the Community page and allow you to set your own assumptions, turn that story into a financial forecast, then into a fair value that you can compare to the current share price to help decide whether United Rentals looks attractive, fully priced, or stretched for your goals.

Because Narratives on the platform are refreshed when new information such as news or earnings is released, your fair value view can stay aligned with what is happening, without you needing to rebuild a model from scratch each time.

For example, one United Rentals Narrative might assume higher long term margins and arrive at a fair value well above US$911.16, while another uses more conservative margins and a different discount rate to reach a fair value that sits below the current share price.

Do you think there’s more to the story for United Rentals? Head over to our Community to see what others are saying!

NYSE:URI 1-Year Stock Price Chart

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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