Herc HoldingsHRI -1.14%86 PEG Ratio is 2.23 as of Jun. 28, 2026, which is 117% above its 10-year median of 1.03. GuruFocus rates HRI with a GF Score™ of 86/100 and a GF Value™ of $168.69 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 447 Business Services companies, Herc Holdings ranks worse than 72.04% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Herc Holdings's PEG Ratio or its related term are showing as below:
HRI'
s PEG Ratio Range Over the Past 10 Years
Min: 0.4 Med: 1.03 Max: 7.15
Current: 2.23
During the past 13 years, Herc Holdings's highest PEG Ratio was 7.15. The lowest was 0.40. And the median was 1.03.
HRI's PEG Ratio is ranked worse than 72.04% of 447
companies
in the Business Services industry
Industry Median: 1.17
vs HRI: 2.23
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Herc Holdings (NYSE:HRI) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Herc Holdings PEG Ratio Related Terms
Herc Holdings PEG Ratio Historical Data
* Premium members only.
The historical data trend for Herc Holdings's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Herc Holdings's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Herc Holdings (HRI) has a PEG Ratio of 2.23 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Herc Holdings and its competitors. This is 117% above median its historical median of 1.03. Over the past decade, Herc Holdings' PEG Ratio has ranged from 0.40 to 7.15. According to the industry distribution chart, Herc Holdings ranks #322 out of 447 companies in the Business Services industry, placing it in the top 72%.
Is Herc Holdings' PEG Ratio too high?
Herc Holdings' current PEG Ratio of 2.23 is 117% above median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 7.15. The Business Services industry median PEG Ratio is 1.17. Herc Holdings' value of 2.23 is 90.6% above this industry median. Based on the distribution chart, Herc Holdings ranks #322 out of 447 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' PEG Ratio compare to WSC and EQPT?
According to the Business Services industry distribution chart, Herc Holdings ranks #322 out of 447 companies for PEG Ratio. This places Herc Holdings in the lower half of its industry. The industry median PEG Ratio is 1.17. Herc Holdings' value of 2.23 is 90.6% above this benchmark. Historically, Herc Holdings' own PEG Ratio has ranged from 0.40 to 7.15 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.17, 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 PEG Ratio for a Business Services company?
The median PEG Ratio among Business Services companies is 1.17, based on 447 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current PEG Ratio of 2.23 is 90.6% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median PEG Ratio is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current PEG Ratio is 2.23, which is 117% above median its own 10-year median of 1.03. 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 Modestly Undervalued. The stock's GF Value™ is $168.69, compared to a current price of $151.26 — trading 10.3% below its estimated fair value. The current PEG Ratio is 2.23, which is 117% above median its 10-year median of 1.03 and 90.6% above the Business Services industry median of 1.17. Herc Holdings' overall GF Score™ is 86/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Herc Holdings (HRI), the current PEG Ratio is 2.23 as of Jun. 28, 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 undervalued.
The current stock price of $151.26 is trading 10.3% below its estimated GF Value™ of $168.69.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
PEG Ratio: 2.23 (117% above median its 10-year median of 1.03)
GF Value™: $168.69 vs. price of $151.26 (10.3% below fair value)
Industry Position: 90.6% above the Business Services median (#322 of 447)
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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