Only one of our models could value this stock with confidence, so use it as a guide.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionHerc Holdings Inc. Common Stock (HRI)
Fair value
Not available
ACCE price target
$130
Rating
Not rated
Horizon
12 months
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $128 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
50
out of 100
Analysts
82% buy
11 covering
P/E
86.2x
forward 12.2x
1-year return
-0.2%
Dividend yield
2.13%
Herc Holdings Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Herc Holdings rents specialty equipment to contractors and industrial customers, including aerial work platforms, earthmoving machinery, power and HVAC gear, and trench safety equipment, with a fleet and branch network that it also sells used. The moat is scale and density: it is one of the largest equipment rental operators in North America, and in a fragmented market, a broad fleet and branch footprint lets it serve national accounts that smaller rivals cannot. Revenue growth of 20.2% is running well ahead of the sector, and the forward P/E of 12.2 sits far below the trailing 81.0, which points to earnings that are currently depressed by heavy fleet investment and acquisition-related costs rather than a broken business. The 12.2% operating margin and 31.9% gross margin give the cash generation to fund fleet growth, but the 2.6% ROE shows how thin the equity return is at present, so the bull case rests on margin recovery and the forward earnings the market is pricing. The stock is worth a deeper look if you want to test whether that gap between trailing and forward earnings closes as fleet utilization holds.