Update shared on 14 Dec 2025
Fair value Increased 5.78%Analysts have raised their price target for Rentokil Initial from approximately $5.39 to $5.70, citing expectations of stronger profit margins and a slightly lower discount rate. These factors more than offset trimmed revenue growth forecasts and a modestly lower future P/E multiple.
Valuation Changes
- Fair Value: Raised modestly from £5.39 to £5.70 per share, reflecting a slightly more optimistic intrinsic valuation.
- Discount Rate: Reduced marginally from 8.14 percent to 8.11 percent, indicating a small decline in perceived risk or required return.
- Revenue Growth: Trimmed from 4.27 percent to 3.30 percent, suggesting more cautious expectations for top line expansion.
- Net Profit Margin: Increased from 8.89 percent to 10.42 percent, pointing to stronger anticipated profitability.
- Future P/E: Lowered from 31.05x to 28.87x, implying a slightly more conservative multiple applied to future earnings.
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