At this time, the firm appears to be undervalued. McGrath RentCorp secures a last-minute Real Value of $134.67 per share. The latest price of the firm is $114.93. Our model forecasts the value of McGrath RentCorp from reviewing the firm fundamentals such as profit margin of 0.16 %, and Return On Equity of 0.13 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting McGrath RentCorp's valuation include:
Price Book
2.4528
Enterprise Value
3.4 B
Enterprise Value Ebitda
7.0575
Price Sales
3.0375
Forward PE
16.835
Undervalued
Today
114.93
Please note that McGrath RentCorp's price fluctuation is very steady at this time. Calculation of the real value of McGrath RentCorp is based on 3 months time horizon. Increasing McGrath RentCorp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since McGrath RentCorp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of McGrath Stock. However, McGrath RentCorp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 114.93
Real 134.67
Target 145.6
Hype 113.57
Naive 113.54
The real value of McGrath Stock, also known as its intrinsic value, is the underlying worth of McGrath RentCorp Company, which is reflected in its stock price. It is based on McGrath RentCorp's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of McGrath RentCorp's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of McGrath RentCorp helps investors to forecast how McGrath stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of McGrath RentCorp more accurately as focusing exclusively on McGrath RentCorp's fundamentals will not take into account other important factors:
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use McGrath RentCorp's intrinsic value based on its ongoing forecasts of McGrath RentCorp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against McGrath RentCorp's closest peers. If more than one evaluation category is relevant for McGrath RentCorp we suggest using both methods to arrive at a better estimate.
McGrath RentCorp Cash
280,250
McGrath Revenue by Product
McGrath RentCorp Total Value Analysis
McGrath RentCorp is now projected to have valuation of 3.42 B with market capitalization of 2.83 B, debt of 514.92 M, and cash on hands of 1.56 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the McGrath RentCorp fundamentals before making equity appraisal based on enterprise value of the company
About 93.0% of the company shares are owned by institutional investors. The book value of McGrath RentCorp was now reported as 48.6. The company has Price/Earnings To Growth (PEG) ratio of 1.12. McGrath RentCorp recorded earning per share (EPS) of 5.85. The entity last dividend was issued on the 16th of January 2026. The firm had 2:1 split on the 28th of March 2005. Based on the analysis of McGrath RentCorp's profitability, liquidity, and operating efficiency, McGrath RentCorp is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in March.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. McGrath RentCorp has an asset utilization ratio of 40.06 percent. This indicates that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that McGrath RentCorp is more efficient with each dollar of assets it utilizes for everyday operations.
Black Monday
Oil Shock
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
Interest Hikes
McGrath RentCorp Profitability Analysis
Considering McGrath RentCorp's profitability and operating efficiency indicators, McGrath RentCorp is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess McGrath RentCorp's ability to earn profits and add value for shareholders.
Net Income
First Reported
1985-09-30
Previous Quarter
42.3 M
Current Value
49.8 M
Quarterly Volatility
16.8 M
Black Monday
Oil Shock
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
Interest Hikes
The current year's Gross Profit is expected to grow to about 477.7 M. The current year's Pretax Profit Margin is expected to grow to 0.28
For McGrath RentCorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of McGrath RentCorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well McGrath RentCorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between McGrath RentCorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of McGrath RentCorp over time as well as its relative position and ranking within its peers.
McGrath RentCorp Earnings per Share Projection vs Actual
The next projected EPS of McGrath RentCorp is estimated to be 1.5733 with future projections ranging from a low of 1.49 to a high of 1.7. McGrath RentCorp's most recent 12-month trailing earnings per share (EPS TTM) is at 5.85. Please be aware that the consensus of earnings estimates for McGrath RentCorp is based on EPS before non-recurring items and includes expenses related to employee stock options.
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
Covid
Interest Hikes
McGrath RentCorp is projected to generate 1.5733 in earnings per share on the 30th of June 2026. McGrath RentCorp earnings estimates show analyst consensus about projected McGrath RentCorp EPS (Earning Per Share). It derives the highest and the lowest estimates based on McGrath RentCorp's historical volatility. Many public companies, such as McGrath RentCorp, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.
McGrath RentCorp Earnings Estimation Breakdown
The calculation of McGrath RentCorp's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of McGrath RentCorp is estimated to be 1.5733 with the future projection ranging from a low of 1.49 to a high of 1.7. Please be aware that this consensus of annual earnings estimates for McGrath RentCorp is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
1.49
Lowest
Expected EPS
1.5733
1.70
Highest
McGrath RentCorp Earnings Projection Consensus
Suppose the current estimates of McGrath RentCorp's value are higher than the current market price of the McGrath RentCorp stock. In this case, investors may conclude that McGrath RentCorp is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and McGrath RentCorp's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of Analysts
Historical Accuracy
Last Reported EPS
Estimated EPS for 30th of June 2026
Current EPS (TTM)
3
71.99%
0.0
1.5733
5.85
McGrath RentCorp Ownership Allocation
McGrath RentCorp maintains a total of 24.61 Million outstanding shares. The majority of McGrath RentCorp outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in McGrath RentCorp to benefit from reduced commissions. Accordingly, institutional holders are subject to a different set of regulations than regular investors in McGrath RentCorp. Please pay attention to any change in the institutional holdings of McGrath RentCorp as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
McGrath RentCorp Profitability Analysis
The company reported the previous year's revenue of 944.24 M. Net Income was 156.31 M with profit before overhead, payroll, taxes, and interest of 441.16 M.
McGrath RentCorp Past Distributions to stockholders
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates McGrath RentCorp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in McGrath RentCorp and how it compares across the competition.
About McGrath RentCorp Valuation
The stock valuation mechanism determines McGrath RentCorp's current worth on a weekly basis. Our valuation model uses a comparative analysis of McGrath RentCorp. We calculate exposure to McGrath RentCorp's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of McGrath RentCorp's related companies.
McGrath RentCorp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether McGrath RentCorp's value is low or high relative to the company's performance and growth projections. Determining the market value of McGrath RentCorp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of McGrath RentCorp represents a small ownership stake in the entity. As a stockholder of McGrath, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
McGrath RentCorp Dividends Analysis For Valuation
At present, McGrath RentCorp's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 2.91, whereas Dividend Payout Ratio is forecasted to decline to 0.30. . At present, McGrath RentCorp's Earnings Yield is projected to increase slightly based on the last few years of reporting.
There are various types of dividends McGrath RentCorp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of McGrath shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from McGrath RentCorp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When McGrath pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of McGrath RentCorp by the value of the dividends paid out.
McGrath RentCorp Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding
24.6 M
Quarterly Earnings Growth Y O Y
-0.717
Forward Price Earnings
16.835
McGrath RentCorp Current Valuation Indicators
Valuation refers to the process of determining the present value of McGrath RentCorp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value McGrath we look at many different elements of the entity such as McGrath's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as McGrath RentCorp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use McGrath RentCorp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes McGrath RentCorp's worth.
Complementary Tools for McGrath Stock analysis
When running McGrath RentCorp's price analysis, check to measure McGrath RentCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McGrath RentCorp is operating at the current time. Most of McGrath RentCorp's value examination focuses on studying past and present price action to predict the probability of McGrath RentCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McGrath RentCorp's price. Additionally, you may evaluate how the addition of McGrath RentCorp to your portfolios can decrease your overall portfolio volatility.