Is United Rentals, Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for United Rentals, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 30, which is significantly higher than its peers, such as American Express Co. at 22.48 and Discover Financial Services at 22.07. Additionally, the EV to EBITDA ratio stands at 12.59, further suggesting that the company's valuation may not be justified relative to its earnings potential.
In terms of performance, United Rentals has shown strong returns, with a year-to-date return of 33.84%, outperforming the S&P 500's 12.22% during the same period. However, the high PEG ratio of 8.29 and the Price to Book Value of 8.60 reinforce the notion that the stock is trading at a premium compared to its intrinsic value. Overall, the combination of these valuation ratios and peer comparisons supports the conclusion that United Rentals, Inc. is overvalued in the current market environment.