RTO Valuation

Rentokil Initial PLC

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24.400

+0.23(0.952%)1D

Overview
Forecast
Valuation
Earnings

RTO Relative Valuation

RTO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RTO is overvalued; if below, it's undervalued.

Historical Valuation

Rentokil Initial PLC (RTO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 18.19 is considered Undervalued compared with the five-year average of 24.77. The fair price of Rentokil Initial PLC (RTO) is between 25.80 to 37.36 according to relative valuation methord. Compared to the current price of 24.39 USD , Rentokil Initial PLC is Undervalued By 5.49%.

Relative Value

Fair Zone

25.80-37.36

Current Price：24.39

5.49%

Undervalued

17.26

Trailing

Forward

11.85

EV/EBITDA

Rentokil Initial PLC. (RTO) has a current EV/EBITDA of 11.85. The 5-year average EV/EBITDA is 13.27. The thresholds are as follows: Strongly Undervalued below 8.63, Undervalued between 8.63 and 10.95, Fairly Valued between 15.59 and 10.95, Overvalued between 15.59 and 17.92, and Strongly Overvalued above 17.92. The current Forward EV/EBITDA of 11.85 falls within the Historic Trend Line -Fairly Valued range.

16.40

EV/EBIT

Rentokil Initial PLC. (RTO) has a current EV/EBIT of 16.40. The 5-year average EV/EBIT is 19.25. The thresholds are as follows: Strongly Undervalued below 10.86, Undervalued between 10.86 and 15.06, Fairly Valued between 23.44 and 15.06, Overvalued between 23.44 and 27.63, and Strongly Overvalued above 27.63. The current Forward EV/EBIT of 16.40 falls within the Historic Trend Line -Fairly Valued range.

1.69

Rentokil Initial PLC. (RTO) has a current PS of 1.69. The 5-year average PS is 2.50. The thresholds are as follows: Strongly Undervalued below 1.28, Undervalued between 1.28 and 1.89, Fairly Valued between 3.12 and 1.89, Overvalued between 3.12 and 3.73, and Strongly Overvalued above 3.73. The current Forward PS of 1.69 falls within the Undervalued range.

10.77

P/OCF

Rentokil Initial PLC. (RTO) has a current P/OCF of 10.77. The 5-year average P/OCF is 13.75. The thresholds are as follows: Strongly Undervalued below 9.06, Undervalued between 9.06 and 11.40, Fairly Valued between 16.09 and 11.40, Overvalued between 16.09 and 18.44, and Strongly Overvalued above 18.44. The current Forward P/OCF of 10.77 falls within the Undervalued range.

21.16

P/FCF

Rentokil Initial PLC. (RTO) has a current P/FCF of 21.16. The 5-year average P/FCF is 27.78. The thresholds are as follows: Strongly Undervalued below 17.91, Undervalued between 17.91 and 22.85, Fairly Valued between 32.72 and 22.85, Overvalued between 32.72 and 37.65, and Strongly Overvalued above 37.65. The current Forward P/FCF of 21.16 falls within the Undervalued range.

Rentokil Initial PLC (RTO) has a current Price-to-Book (P/B) ratio of 8.69. Compared to its 3-year average P/B ratio of 4.03 , the current P/B ratio is approximately 115.57% higher. Relative to its 5-year average P/B ratio of 5.65, the current P/B ratio is about 53.78% higher. Rentokil Initial PLC (RTO) has a Forward Free Cash Flow (FCF) yield of approximately 6.32%. Compared to its 3-year average FCF yield of 4.59%, the current FCF yield is approximately 37.70% lower. Relative to its 5-year average FCF yield of 4.51% , the current FCF yield is about 40.26% lower.

1.74

P/B

Median3y

4.03

Median5y

5.65

6.42

FCF Yield

Median3y

4.59

Median5y

4.51

Competitors Valuation Multiple

The average P/S ratio for RTO's competitors is 1.74, providing a benchmark for relative valuation. Rentokil Initial PLC Corp (RTO) exhibits a P/S ratio of 1.69, which is -2.50% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Charles River Laboratories International Inc

Performance Decomposition

Market capitalization of RTO increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00%to the performance.

Overall, the performance of RTO in the past 1 year is driven by Unknown.