United Rentals Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	2,105)	1,386)	890)	1,174)	1,096)
Net noncash charges	2,304)	1,952)	1,771)	2,055)	1,803)
Changes in operating assets and liabilities, net of amounts acquired	24)	351)	(3)	(205)	(46)
Net cash provided by operating activities	4,433)	3,689)	2,658)	3,024)	2,853)
Cash paid for interest, net of tax¹	305)	294)	377)	451)	338)
Purchases of rental equipment	(3,436)	(2,998)	(961)	(2,132)	(2,106)
Purchases of non-rental equipment and intangible assets	(254)	(200)	(197)	(218)	(185)
Proceeds from sales of rental equipment	965)	968)	858)	831)	664)
Proceeds from sales of non-rental equipment	24)	30)	42)	37)	23)
Leased assets obtained in exchange for new finance lease liabilities	(47)	(66)	(64)	(55)	—)
Free cash flow to the firm (FCFF)	1,990)	1,717)	2,713)	1,938)	1,587)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the United Rentals Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	United Rentals Inc. FCFF decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

United Rentals Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	24.88%	24.92%	21.86%	22.46%	25.75%
Interest Paid, Net of Tax
Cash paid for interest, before tax	406)	391)	483)	581)	455)
Less: Cash paid for interest, tax²	101)	97)	106)	130)	117)
Cash paid for interest, net of tax	305)	294)	377)	451)	338)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² 2022 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 406 × 24.88% = 101

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United Rentals Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	38,486)
Free cash flow to the firm (FCFF)	1,990)
Valuation Ratio
EV/FCFF	19.34
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	19.40
Caterpillar Inc.	18.37
Eaton Corp. plc	48.30
GE Aerospace	38.51
Honeywell International Inc.	32.92
Lockheed Martin Corp.	20.82
RTX Corp.	29.49
EV/FCFF, Sector
Capital Goods	32.61
EV/FCFF, Industry
Industrials	30.48

Based on: 10-K (reporting date: 2022-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

United Rentals Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	38,486)	31,830)	26,539)	22,700)	20,938)
Free cash flow to the firm (FCFF)²	1,990)	1,717)	2,713)	1,938)	1,587)
Valuation Ratio
EV/FCFF³	19.34	18.54	9.78	11.72	13.19
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	37.53	—	—	—	—
Caterpillar Inc.	23.54	20.50	23.83	16.84	—
Eaton Corp. plc	33.44	38.16	21.94	15.50	—
GE Aerospace	17.29	56.53	32.34	15.85	—
Honeywell International Inc.	29.82	25.22	26.49	21.13	—
Lockheed Martin Corp.	19.69	13.92	14.64	21.21	—
RTX Corp.	28.45	27.29	35.26	21.94	—
EV/FCFF, Sector
Capital Goods	25.87	32.16	74.97	24.73	—
EV/FCFF, Industry
Industrials	24.88	28.41	72.49	31.28	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 38,486 ÷ 1,990 = 19.34

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	United Rentals Inc. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

United Rentals Inc. (NYSE:URI)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical