4 models fit McGrath RentCorp Common Stock and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Silver67
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionMcGrath RentCorp Common Stock (MGRC)
Fair value (4 models)
$132
ACCE price target
$119
Rating
Fairly valued
Horizon
12 months
Fair value published on 18 Oct 2026, 17:04 CEST; previously $176 since 10 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $117 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
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
Price vs fair value
11.2% below
+12.6% to fair value
ACCE score
52
out of 100
Analysts
100% buy
3 covering
P/E
18.9x
forward 16.9x
1-year return
-2.7%
Dividend yield
1.70%
McGrath RentCorp Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
McGrath RentCorp rents and sells modular classrooms, portable storage containers, and electronic test equipment through its Mobile Modular, TRS-RenTelco and Enviroplex segments. Its edge is a large, mature rental fleet and a reputation with schools and public agencies, which give it repeat demand and pricing discipline in a niche where few national competitors operate at scale. The near-term picture is weaker, with revenue down 6.2% and a 23.3% operating margin that looks thin against a 48.5% gross margin, so the thesis hinges on whether the fleet and utilization can recover. At 18.2 times trailing and 16.2 times forward earnings, the stock is priced for that recovery rather than for current growth. The 48 out of 100 score and the lack of index membership suggest the market has not yet rewarded the franchise, so the case needs a deeper look at utilization trends and fleet spending before it earns a position.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Revenue and earnings declining
Revenue and earnings are both down 6.2% year over year, and quarter-over-quarter revenue fell 22.7%, despite a 10.5% five-year revenue CAGR.
moderate
ACCE score down sharply
The ACCE score fell 9 points over 90 days, from 57 to 48, with the momentum component at 40 and growth at 7.
moderate
Stock trades near ACCE target
The price of $117.16 sits 1.5% below the ACCE price target of $119.00, and 11.2% below the model fair value of $131.97, so limited upside is implied by our own figures.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-10-18 · prices to Oct 23, 2026
Why it could do well
Free cash flow of $211M over the last twelve months gives the business real cash to fund its own growth and payouts.
The stock trades on a forward P/E of 16.2x, below the sector median of 23.6x, while analysts' mean target sits 28.6% above the share price.
Consensus models put fair value at $131.97, and four of five valuation models sit in that consensus.
Why it could disappoint
Revenue fell 6.2% year over year, a sharp reversal from a five-year average growth rate of 10.5% per year.
The latest quarter missed expectations, with earnings per share of 1.37 against 1.46 expected, a 6.2% shortfall.
Return on invested capital of 7.3% is modest, and the price implies only 4.9% yearly cash flow growth over five years.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where MGRC's valuation models land
Price
$117.16
Model fair value
$132
Model range
$85.03 to $160
Fair value $132
Price $117
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores