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Herc HoldingsHRI -0.41%86 EV-to-OCF is 11.97 as of Aug. 06, 2026, which is 49% above its 10-year median of 8.01. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $167.73 (Fairly Valued). The stock has 11 warning signs investors should review. Among 1,096 Business Services companies, Herc Holdings ranks worse than 66.97% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Herc Holdings's Enterprise Value is $15,136 Mil.
Herc Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $1,264 Mil. Therefore, Herc Holdings's EV-to-OCF for today is 11.97.
The historical rank and industry rank for Herc Holdings's EV-to-OCF or its related term are showing as below:
HRI'
s EV-to-OCF Range Over the Past 10 Years
Min: 4.37 Med: 8.01 Max: 14.49
Current: 11.97
During the past 13 years, the highest EV-to-OCF of Herc Holdings was 14.49. The lowest was 4.37. And the median was 8.01.
HRI's EV-to-OCF is ranked worse than 66.97% of 1096
companies
in the Business Services industry
Industry Median: 7.06
vs HRI: 11.97
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Herc Holdings's PE Ratio (TTM) for today is calculated as:
Herc Holdings's share price for today is $168.14.
Herc Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.470.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Herc Holdings EV-to-OCF Related Terms
Herc Holdings EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Herc Holdings's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Rental & Leasing Services subindustry, Herc Holdings's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Herc Holdings EV-to-OCF vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Herc Holdings's EV-to-OCF falls into.
Herc Holdings's current Enterprise Value is $15,136 Mil.
Herc Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,264 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Herc Holdings (HRI) has a EV-to-OCF of 11.97 as of Aug. 06, 2026. This is 49% above median its historical median of 8.01. Over the past decade, Herc Holdings' EV-to-OCF has ranged from 4.37 to 14.49. According to the industry distribution chart, Herc Holdings ranks #734 out of 1096 companies in the Business Services industry, placing it in the top 67%.
Is Herc Holdings' EV-to-OCF too high?
Herc Holdings' current EV-to-OCF of 11.97 is 49% above median its 10-year median of 8.01. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 14.49. The Business Services industry median EV-to-OCF is 7.06. Herc Holdings' value of 11.97 is 69.5% above this industry median. Based on the distribution chart, Herc Holdings ranks #734 out of 1096 companies in the Business Services industry, which is below the industry midpoint. Overall, Herc Holdings has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' EV-to-OCF compare to CAR and EQPT?
According to the Business Services industry distribution chart, Herc Holdings ranks #734 out of 1096 companies for EV-to-OCF. This places Herc Holdings in the lower half of its industry. The industry median EV-to-OCF is 7.06. Herc Holdings' value of 11.97 is 69.5% above this benchmark. Historically, Herc Holdings' own EV-to-OCF has ranged from 4.37 to 14.49 over the past decade. While the company's 10-year median is 8.01 vs. the industry median of 7.06, Herc Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Business Services company?
The median EV-to-OCF among Business Services companies is 7.06, based on 1,096 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current EV-to-OCF of 11.97 is 69.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Business Services industry, the median EV-to-OCF is 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current EV-to-OCF is 11.97, which is 49% above median its own 10-year median of 8.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herc Holdings stock overvalued right now?
Based on GuruFocus' analysis, Herc Holdings (HRI) is currently considered Fairly Valued. The stock's GF Value™ is $167.73, compared to a current price of $168.14 — trading 0.2% above its estimated fair value. The current EV-to-OCF is 11.97, which is 49% above median its 10-year median of 8.01 and 69.5% above the Business Services industry median of 7.06. Herc Holdings' overall GF Score™ is 86/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Herc Holdings (HRI), the current EV-to-OCF is 11.97 as of Aug. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Herc Holdings (HRI) Overvalued in 2026?
Based on GuruFocus' analysis, Herc Holdings stock appears to be overvalued.
The current stock price of $168.14 is trading 0.2% above its estimated GF Value™ of $167.73.
GuruFocus considers Herc Holdings to be Fairly Valued.
Key valuation signals for HRI:
EV-to-OCF: 11.97 (49% above median its 10-year median of 8.01)
GF Value™: $167.73 vs. price of $168.14 (0.2% above fair value)
Industry Position: 69.5% above the Business Services median (#734 of 1096)
No single metric tells the full story. See the HRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest player in North America, after United Rentals and Sunbelt Rentals, with an approximate 6% market share pro forma for its 2025 acquisition of H&E Equipment Services. It serves a similar mix of companies to its peers (industrial, commercial, and residential construction) from its 450 locations targeting the top 100 metropolitan markets in the US. Herc's rental fleet of approximately $7 billion is also similar in composition to its peer group in terms of equipment offered. The company is also pursuing diversification by bundling and increasing specialty solutions for its customer base. Herc's portfolio skews toward local customers versus national accounts (60%/40%).
86GF Score
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