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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-26), Herc Holdings's 1-Year Sharpe Ratio is 0.33.
Herc Holdings (NYSE:HRI) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Herc Holdings 1-Year Sharpe Ratio Related Terms
HRI vs EQPT, WSC, CAR: 1-Year Sharpe Ratio Comparison
For the Rental & Leasing Services subindustry, Herc Holdings's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Herc Holdings's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Herc Holdings (HRI) has a 1-Year Sharpe Ratio of 0.33 as of Jul. 26, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Herc Holdings and its competitors.
Is Herc Holdings' 1-Year Sharpe Ratio too high?
Herc Holdings' current 1-Year Sharpe Ratio is 0.33. 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' 1-Year Sharpe Ratio compare to EQPT and WSC?
Herc Holdings' 1-Year Sharpe Ratio of 0.33 can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Business Services company?
A good 1-Year Sharpe Ratio depends on the Business Services industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Herc Holdings and its competitors. Herc Holdings's current 1-Year Sharpe Ratio is 0.33. 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 $169.04, compared to a current price of $162.59 — trading 3.8% below its estimated fair value. The current 1-Year Sharpe Ratio is 0.33. Herc Holdings' overall GF Score™ is 86/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Herc Holdings (HRI), the current 1-Year Sharpe Ratio is 0.33 as of Jul. 26, 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 $162.59 is trading 3.8% below its estimated GF Value™ of $169.04.
GuruFocus considers Herc Holdings to be Fairly Valued.
Key valuation signals for HRI:
1-Year Sharpe Ratio: 0.33
GF Value™: $169.04 vs. price of $162.59 (3.8% below fair value)
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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