McGrath RentCorpMGRC -0.80%90 PEG Ratio is 1.48 as of Jul. 02, 2026, which is 44% below its 10-year median of 2.62. GuruFocus rates MGRC with a GF Score™ of 90/100 and a GF Value™ of $122.22 (Fairly Valued). The stock has 5 warning signs investors should review. Among 447 Business Services companies, McGrath RentCorp ranks worse than 60.63% 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 McGrath RentCorp's PEG Ratio or its related term are showing as below:
MGRC'
s PEG Ratio Range Over the Past 10 Years
Min: 1.04 Med: 2.62 Max: 22.58
Current: 1.48
During the past 13 years, McGrath RentCorp's highest PEG Ratio was 22.58. The lowest was 1.04. And the median was 2.62.
MGRC's PEG Ratio is ranked worse than 60.63% of 447
companies
in the Business Services industry
Industry Median: 1.18
vs MGRC: 1.48
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
McGrath RentCorp (NAS:MGRC) 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.
McGrath RentCorp PEG Ratio Related Terms
McGrath RentCorp PEG Ratio Historical Data
* Premium members only.
The historical data trend for McGrath RentCorp'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, McGrath RentCorp'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.
McGrath RentCorp PEG Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, McGrath RentCorp's PEG Ratio distribution charts can be found below:
* The bar in red indicates where McGrath RentCorp'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.
McGrath RentCorp (MGRC) has a PEG Ratio of 1.48 as of Jul. 02, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on McGrath RentCorp and its competitors. This is 44% below median its historical median of 2.62. Over the past decade, McGrath RentCorp's PEG Ratio has ranged from 1.04 to 22.58. According to the industry distribution chart, McGrath RentCorp ranks #271 out of 447 companies in the Business Services industry, placing it in the top 60.6%.
Is McGrath RentCorp's PEG Ratio too high?
McGrath RentCorp's current PEG Ratio of 1.48 is 44% below median its 10-year median of 2.62. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 22.58. The Business Services industry median PEG Ratio is 1.18. McGrath RentCorp's value of 1.48 is 25.4% above this industry median. Based on the distribution chart, McGrath RentCorp ranks #271 out of 447 companies in the Business Services industry, which is below the industry midpoint. Overall, McGrath RentCorp has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McGrath RentCorp's PEG Ratio compare to CTOS and VSTS?
According to the Business Services industry distribution chart, McGrath RentCorp ranks #271 out of 447 companies for PEG Ratio. This places McGrath RentCorp in the lower half of its industry. The industry median PEG Ratio is 1.18. McGrath RentCorp's value of 1.48 is 25.4% above this benchmark. Historically, McGrath RentCorp's own PEG Ratio has ranged from 1.04 to 22.58 over the past decade. While the company's 10-year median is 2.62 vs. the industry median of 1.18, McGrath RentCorp 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 1.18, 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. McGrath RentCorp's current PEG Ratio of 1.48 is 25.4% 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 McGrath RentCorp and its competitors. For the Business Services industry, the median PEG Ratio is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGrath RentCorp's current PEG Ratio is 1.48, which is 44% below median its own 10-year median of 2.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGrath RentCorp stock overvalued right now?
Based on GuruFocus' analysis, McGrath RentCorp (MGRC) is currently considered Fairly Valued. The stock's GF Value™ is $122.22, compared to a current price of $119.90 — trading 1.9% below its estimated fair value. The current PEG Ratio is 1.48, which is 44% below median its 10-year median of 2.62 and 25.4% above the Business Services industry median of 1.18. McGrath RentCorp's overall GF Score™ is 90/100 with 5 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 McGrath RentCorp (MGRC), the current PEG Ratio is 1.48 as of Jul. 02, 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 McGrath RentCorp (MGRC) Overvalued in 2026?
Based on GuruFocus' analysis, McGrath RentCorp stock appears to be undervalued.
The current stock price of $119.90 is trading 1.9% below its estimated GF Value™ of $122.22.
GuruFocus considers McGrath RentCorp to be Fairly Valued.
Key valuation signals for MGRC:
PEG Ratio: 1.48 (44% below median its 10-year median of 2.62)
GF Value™: $122.22 vs. price of $119.90 (1.9% below fair value)
Industry Position: 25.4% above the Business Services median (#271 of 447)
No single metric tells the full story. See the MGRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McGrath RentCorp is a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers, and electronic test equipment. It comprises four reportable business segments, namely the Modular Building segment (Mobile Modular), which generates maximum revenue; the Portable Storage segment (Portable Storage); the Electronic Test Equipment segment (TRS-RenTelco); and its classroom manufacturing business (Enviroplex), which sells modular buildings used as classrooms in California. The company generates its revenues mainly from the rental of its equipment under operating leases, with sales of equipment occurring in the normal course of business.
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