What is McGrath Rentcorp worth?
With the base-case assumptions below, a discounted cash flow model on McGrath Rentcorp's reported free cash flow gives $216.57 per share. The share price was $128.57 on November 10, 2026, 41% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 5.5% | 10.0% | $134.51 | +5% |
| Base | 10.5% | 9.0% | $216.57 | +68% |
| Bull | 15.5% | 8.0% | $380.14 | +196% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $278.65 | $297.80 | $321.20 | $350.45 | $388.07 |
| 8.0% | $232.17 | $244.59 | $259.26 | $276.87 | $298.40 |
| 9.0% | $198.28 | $206.77 | $216.57 | $228.00 | $241.50 |
| 10.0% | $172.52 | $178.56 | $185.40 | $193.22 | $202.24 |
| 11.0% | $152.31 | $156.74 | $161.69 | $167.25 | $173.56 |
Where the presets come from
Base: years 1 to 5 grow at McGrath Rentcorp's revenue growth rate over the last 5 fiscal years (10.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions