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 20.51 is considered Undervalued compared with the five-year average of 23.93. The fair price of Rentokil Initial PLC (RTO) is between 32.80 to 43.97 according to relative valuation methord. Compared to the current price of 28.27 USD , Rentokil Initial PLC is Undervalued By 13.81%.
Relative Value
Fair Zone
32.80-43.97
Current Price：28.27
13.81%
Undervalued
20.51
PE
1Y
3Y
5Y
Trailing
Forward
13.47
EV/EBITDA
Rentokil Initial PLC. (RTO) has a current EV/EBITDA of 13.47. The 5-year average EV/EBITDA is 13.03. The thresholds are as follows: Strongly Undervalued below 8.79, Undervalued between 8.79 and 10.91, Fairly Valued between 15.15 and 10.91, Overvalued between 15.15 and 17.27, and Strongly Overvalued above 17.27. The current Forward EV/EBITDA of 13.47 falls within the Historic Trend Line -Fairly Valued range.
18.06
EV/EBIT
Rentokil Initial PLC. (RTO) has a current EV/EBIT of 18.06. The 5-year average EV/EBIT is 18.68. The thresholds are as follows: Strongly Undervalued below 11.21, Undervalued between 11.21 and 14.95, Fairly Valued between 22.41 and 14.95, Overvalued between 22.41 and 26.15, and Strongly Overvalued above 26.15. The current Forward EV/EBIT of 18.06 falls within the Historic Trend Line -Fairly Valued range.
1.99
PS
Rentokil Initial PLC. (RTO) has a current PS of 1.99. The 5-year average PS is 2.42. The thresholds are as follows: Strongly Undervalued below 1.24, Undervalued between 1.24 and 1.83, Fairly Valued between 3.01 and 1.83, Overvalued between 3.01 and 3.60, and Strongly Overvalued above 3.60. The current Forward PS of 1.99 falls within the Historic Trend Line -Fairly Valued range.
13.27
P/OCF
Rentokil Initial PLC. (RTO) has a current P/OCF of 13.27. The 5-year average P/OCF is 13.46. The thresholds are as follows: Strongly Undervalued below 9.13, Undervalued between 9.13 and 11.29, Fairly Valued between 15.62 and 11.29, Overvalued between 15.62 and 17.79, and Strongly Overvalued above 17.79. The current Forward P/OCF of 13.27 falls within the Historic Trend Line -Fairly Valued range.
23.85
P/FCF
Rentokil Initial PLC. (RTO) has a current P/FCF of 23.85. The 5-year average P/FCF is 27.07. The thresholds are as follows: Strongly Undervalued below 17.54, Undervalued between 17.54 and 22.30, Fairly Valued between 31.83 and 22.30, Overvalued between 31.83 and 36.60, and Strongly Overvalued above 36.60. The current Forward P/FCF of 23.85 falls within the Historic Trend Line -Fairly Valued range.
Rentokil Initial PLC (RTO) has a current Price-to-Book (P/B) ratio of 10.15. Compared to its 3-year average P/B ratio of 4.65 , the current P/B ratio is approximately 118.31% higher. Relative to its 5-year average P/B ratio of 5.76, the current P/B ratio is about 76.14% higher. Rentokil Initial PLC (RTO) has a Forward Free Cash Flow (FCF) yield of approximately 5.47%. Compared to its 3-year average FCF yield of 4.83%, the current FCF yield is approximately 13.19% lower. Relative to its 5-year average FCF yield of 4.62% , the current FCF yield is about 18.22% lower.
10.15
P/B
Median3y
4.65
Median5y
5.76
5.47
FCF Yield
Median3y
4.83
Median5y
4.62
Competitors Valuation Multiple
The average P/S ratio for RTO's competitors is 1.99, providing a benchmark for relative valuation. Rentokil Initial PLC Corp (RTO) exhibits a P/S ratio of 1.99, which is 0.00% 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
Performance Decomposition
1Y
3Y
5Y
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.
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FAQ
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