Switch to:
GuruFocus has detected 4 Warning Signs with United Rentals Inc $URI.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
United Rentals Inc (NYSE:URI)
EV-to-EBIT
12.82 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, United Rentals Inc's enterprise value is $18,087 Mil. United Rentals Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was $1,411 Mil. Therefore, United Rentals Inc's EV/EBIT ratio for today is 12.82.

URI' s EV-to-EBIT Range Over the Past 10 Years
Min: -6   Max: 49.7
Current: 12.82

-6
49.7

During the past 13 years, the highest EV/EBIT Ratio of United Rentals Inc was 49.70. The lowest was -6.00. And the median was 12.00.

URI's EV-to-EBIT is ranked higher than
67% of the 200 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 16.10 vs. URI: 12.82 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). United Rentals Inc's enterprise value for the quarter that ended in Jun. 2017 was $17,151 Mil. United Rentals Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was $1,411 Mil. United Rentals Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2017 was 8.23%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=18086.904/1411
=12.82

United Rentals Inc's current Enterprise Value is $18,087 Mil.
United Rentals Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was 412 (Sep. 2016 ) + 402 (Dec. 2016 ) + 257 (Mar. 2017 ) + 340 (Jun. 2017 ) = $1,411 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

United Rentals Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2017 )
=1411/17151.038
=8.23 %

United Rentals Inc's Enterprise Value for the quarter that ended in Jun. 2017 was $17,151 Mil.
United Rentals Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was 412 (Sep. 2016 ) + 402 (Dec. 2016 ) + 257 (Mar. 2017 ) + 340 (Jun. 2017 ) = $1,411 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


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
ev2ebit 5.06-6.0430.4020.5312.2217.1013.1812.759.6411.57

United Rentals Inc Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
ev2ebit 11.2810.889.009.648.929.2810.1811.5712.3912.16
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK