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GuruFocus has detected 3 Warning Signs with United Rentals Inc $URI.
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United Rentals Inc (NYSE:URI)
EV-to-EBITDA
6.24 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, United Rentals Inc's enterprise value is $16,609 Mil. United Rentals Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $2,663 Mil. Therefore, United Rentals Inc's EV/EBITDA ratio for today is 6.24.

URI' s EV-to-EBITDA Range Over the Past 10 Years
Min: -33.4   Max: 11.9
Current: 6.23

-33.4
11.9

During the past 13 years, the highest EV/EBITDA Ratio of United Rentals Inc was 11.90. The lowest was -33.40. And the median was 5.90.

URI's EV-to-EBITDA is ranked higher than
71% of the 274 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.54 vs. URI: 6.23 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, United Rentals Inc's stock price is $113.56. United Rentals Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $6.74. Therefore, United Rentals Inc's P/E Ratio for today is 16.85.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

United Rentals Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=16609.340/2663
=6.24

United Rentals Inc's current Enterprise Value is $16,609 Mil.
United Rentals Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 653 (Jun. 2016 ) + 723 (Sep. 2016 ) + 720 (Dec. 2016 ) + 567 (Mar. 2017 ) = $2,663 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

United Rentals Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=113.56/6.74
=16.85

United Rentals Inc's share price for today is $113.56.
United Rentals Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.52 (Jun. 2016 ) + 2.16 (Sep. 2016 ) + 1.79 (Dec. 2016 ) + 1.27 (Mar. 2017 ) = $6.74.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

United Rentals Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 3.10-32.325.946.335.547.326.546.875.306.15

United Rentals Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 6.876.176.025.005.304.824.975.416.156.64
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