AlphaMadera's AlphaVal page classifies United Rentals, Inc. as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag URI as undervalued, fairly valued, or overvalued.

What is United Rentals, Inc.'s fair value?

Fair value for URI comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value URI?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. URI was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from URI's most recent reported fundamentals.

URI - United Rentals, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $1,233.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong

Trading 175.3% above fair value

Current Price $1030.25

Bear Case $180.35 82.5% downside ($180.35 - $1,030.25) / $1,030.25 = -82.5% 8% stage 1 growth, 12% discount

Fair Value $374.29 63.7% downside ($374.29 - $1,030.25) / $1,030.25 = -63.7% 13% stage 1 growth, 12% discount

Bull Case $577.04 44.0% downside ($577.04 - $1,030.25) / $1,030.25 = -44.0% 16% stage 1 growth, 12% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

12.7%

Discount Rate (WACC)

12.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (13% base case)

Terminal Value % of EV 37%

Implied Market Multiple 46.6x

Market is pricing in (growth) 22.4% vs our 12.7% base

Plain-Language Summary

Using a two-stage FCF DCF with 13% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $374.29 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (41 analysts) $1233.00

Analyst Range $903.00 – $1421.00

Divergence from AlphaVal 70%

Warnings

ℹ Wall Street's average price target is $1233.00 (from 41 analysts). Our estimate is 70% below the consensus -- consider that gap carefully.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions