Herc Holdings Stock Valuation

HRI Stock  USD 159.62  0.55  0.35%   
Do you want to know what the current value of Herc Holdings is today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Herc Holdings, is its stock price multiplied by the total number of shares outstanding, calculating Herc Holdings' enterprise value requires a different approach. It uses Herc Holdings' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Free Cash Flow is estimated to increase to about 265.2 M, while Enterprise Value is projected to decrease to roughly 6.6 B.
Herc Holdings retains a regular Real Value of $176.64 per share. The prevalent price of the firm is $159.62. At this time, the firm appears to be undervalued. Our model calculates the value of Herc Holdings from evaluating the firm fundamentals such as Current Valuation of 7.26 B, return on equity of 0.31 %, and Return On Asset of 0.06 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage locking in undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
Herc Holdings Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Herc Holdings's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Herc Holdings Most Recent Valuation Data

Dividend Share
0.575
Beta
2.4862
Change Receivables
-92.7 M
Fiscal Year End
December
Property Plant And Equipment Net
721 M
Undervalued
Today 159.62
Please note that Herc Holdings' price fluctuation is very steady at this time. Calculation of the real value of Herc Holdings is based on 3 months time horizon. Increasing Herc Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Herc Holdings is useful when determining the fair value of the Herc Holdings stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Herc Holdings. Since Herc Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Herc Holdings Stock. However, Herc Holdings' 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.
143.66
Downside
176.64
Real Value
178.95
Upside
Estimating the potential upside or downside of Herc Holdings helps investors to forecast how Herc Holdings 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 Herc Holdings more accurately as focusing exclusively on Herc Holdings' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
131.71147.08162.45
Details
Hype
Prediction
LowEstimated ValueHigh
157.31159.62161.93
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.730.740.75
Details
5 Analysts
Consensus
LowTarget PriceHigh
161.00202.75225.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Herc Holdings' intrinsic value based on its ongoing forecasts of Herc Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Herc Holdings' closest peers. When choosing an evaluation method for Herc Holdings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Herc Holdings Valuation Drivers Correlation

Many accounts on the financial statements of Herc Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Herc Holdings's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Herc Holdings
Click cells to compare fundamentals

Herc Holdings Valuation Trend

Knowing Herc Holdings' actual value is paramount for traders to make sound investment determinations. Herc Holdings' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Herc Holdings' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Herc Holdings' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Herc Holdings Market Cap

Herc Holdings is rated # 4 in market capitalization category among related companies. Market capitalization of Industrials industry is currently estimated at about 67.41 Billion. Herc Holdings holds roughly 4.67 Billion in market capitalization claiming about 7% of equities under Industrials industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

Herc Holdings Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Herc Holdings's current stock value. Our valuation model uses many indicators to compare Herc Holdings value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Herc Holdings competition to find correlations between indicators driving Herc Holdings's intrinsic value. More Info.
Herc Holdings is rated # 5 in price to sales category among related companies. It is rated # 4 in last dividend paid category among related companies creating about  0.40  of Last Dividend Paid per Price to Sales. The ratio of Price to Sales to Last Dividend Paid for Herc Holdings is roughly  2.50 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Herc Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Herc Holdings' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Herc Holdings' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Herc Holdings' 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 Herc Holdings and how it compares across the competition.

About Herc Holdings Valuation

The stock valuation mechanism determines the current worth of Herc Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Herc Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Herc Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Herc Holdings's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Herc Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Herc Holdings. We calculate exposure to Herc Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Herc Holdings's related companies.
Fiscal Year End
December
Industry
Rental & Leasing Services
Concentration
Trading Companies & Distributors
Full Time Employees
5.6 K
Service Category
Trading Companies & Distributors
Last ReportedProjected for 2023
Gross Profit791.8 M694.9 M
Profit Margin 9.73  10.50 

8 Steps to conduct Herc Holdings' Valuation Analysis

Company's valuation is the process of determining the worth of a company in monetary terms. It estimates a company's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Herc Holdings' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Herc Holdings' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Herc Holdings' revenue streams: Identify Herc Holdings' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Herc Holdings' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Herc Holdings' growth potential: Evaluate Herc Holdings' management, business model, and growth potential.
  • Determine Herc Holdings' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Herc Holdings' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Herc Holdings' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Herc Holdings' value is low or high relative to the company's performance and growth projections. Determining the market value of Herc Holdings can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Herc Holdings represents a small ownership stake in the entity. As a stockholder of Herc Holdings, 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.

Herc Holdings Dividends Analysis For Valuation

The current Payment of Dividends and Other Cash Distributions is estimated to decrease to about (14.4 M). The current Dividend Yield is estimated to decrease to 0.002684. Herc Holdings Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to decrease significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 511.4 Million. The current Earnings before Tax is estimated to increase to about 360.3 M, while Accumulated Retained Earnings Deficit are projected to decrease to (66.3 M).
Last ReportedProjected for 2023
Payment of Dividends and Other Cash Distributions-13.3 M-14.4 M
Dividend Yield 0.0027  0.002684 
Dividends per Basic Common Share 0.45  0.45 
There are various types of dividends Herc Holdings 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 Herc Holdings 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 Herc Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Herc Holdings pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Herc Holdings by the value of the dividends paid out.

Herc Holdings Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Herc Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y0.418

Herc Holdings Current Valuation Indicators

Valuation refers to the process of determining the present value of Herc Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Herc Holdings we look at many different elements of the entity such as Herc Holdings's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Herc Holdings' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Herc Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Herc Holdings, 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 Herc Holdings' 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 Herc Holdings' worth.
Please check Risk vs Return Analysis. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running Herc Holdings price analysis, check to measure Herc Holdings' 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 Herc Holdings is operating at the current time. Most of Herc Holdings' value examination focuses on studying past and present price action to predict the probability of Herc Holdings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Herc Holdings' price. Additionally, you may evaluate how the addition of Herc Holdings to your portfolios can decrease your overall portfolio volatility.
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Is Herc Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Herc Holdings. If investors know Herc Holdings will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Herc Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.418
Market Capitalization
4.7 B
Quarterly Revenue Growth
0.354
Return On Assets
0.063
Return On Equity
0.3051
The market value of Herc Holdings is measured differently than its book value, which is the value of Herc Holdings that is recorded on the company's balance sheet. Investors also form their own opinion of Herc Holdings' value that differs from its market value or its book value, called intrinsic value, which is Herc Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Herc Holdings' market value can be influenced by many factors that don't directly affect Herc Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Herc Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine Herc Holdings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Herc Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.