An Intrinsic Calculation For Reckitt Benckiser Group plc (LON:RKT) Suggests It's 48% Undervalued
Aug 21
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U.K. (FTSE) Consumer Staples Sector Analysis
UpdatedAug 22, 2025
DataAggregated Company Financials
Companies53
- 7D3.4%
- 3M10.1%
- 1Y14.4%
- YTD12.3%
In the last week, the Consumer Staples industry is up 3.4%, with Unilever up 4.0%. In the same time, Fevertree Drinks was down 9.6%. In the last 12 months, the industry was up 14%. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the U.K. Consumer Staples Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 22 Aug 2025 | UK£416.1b | UK£296.4b | UK£18.4b | 19.3x | 22.6x | 1.4x |
| Sun, 20 Jul 2025 | UK£384.7b | UK£297.5b | UK£19.5b | 19.3x | 19.7x | 1.3x |
| Tue, 17 Jun 2025 | UK£383.5b | UK£296.3b | UK£19.6b | 19.7x | 19.6x | 1.3x |
| Thu, 15 May 2025 | UK£367.2b | UK£295.2b | UK£19.8b | 17.5x | 18.6x | 1.2x |
| Sat, 12 Apr 2025 | UK£367.7b | UK£297.5b | UK£19.7b | 16.4x | 18.7x | 1.2x |
| Mon, 10 Mar 2025 | UK£376.0b | UK£294.7b | UK£19.8b | 16.4x | 19x | 1.3x |
| Wed, 05 Feb 2025 | UK£382.2b | UK£296.2b | UK£3.7b | 16.8x | 103.3x | 1.3x |
| Fri, 03 Jan 2025 | UK£410.7b | UK£309.4b | UK£5.3b | 17.8x | 78.1x | 1.3x |
| Sun, 01 Dec 2024 | UK£410.4b | UK£309.1b | UK£5.2b | 16.9x | 79x | 1.3x |
| Tue, 29 Oct 2024 | UK£409.7b | UK£307.8b | UK£4.1b | 17.8x | 99.5x | 1.3x |
| Thu, 26 Sep 2024 | UK£413.6b | UK£306.5b | UK£3.9b | 17.3x | 106.1x | 1.3x |
| Sat, 24 Aug 2024 | UK£406.5b | UK£307.7b | UK£4.0b | 18.5x | 102.5x | 1.3x |
| Mon, 22 Jul 2024 | UK£390.7b | UK£312.9b | UK£4.2b | 16.6x | 92.9x | 1.2x |
| Wed, 19 Jun 2024 | UK£391.0b | UK£354.3b | UK£5.7b | 16.3x | 68.7x | 1.1x |
| Fri, 17 May 2024 | UK£404.2b | UK£352.0b | UK£5.4b | 17.4x | 74.8x | 1.1x |
| Sun, 14 Apr 2024 | UK£362.9b | UK£349.8b | UK£5.5b | 16.5x | 65.8x | 1x |
| Tue, 12 Mar 2024 | UK£378.9b | UK£344.2b | UK£4.6b | 16.8x | 82.2x | 1.1x |
| Thu, 08 Feb 2024 | UK£381.6b | UK£348.7b | UK£30.4b | 15.5x | 12.5x | 1.1x |
| Sat, 06 Jan 2024 | UK£387.3b | UK£362.7b | UK£31.1b | 16.4x | 12.5x | 1.1x |
| Mon, 04 Dec 2023 | UK£385.8b | UK£362.6b | UK£31.0b | 16.6x | 12.4x | 1.1x |
| Wed, 01 Nov 2023 | UK£385.7b | UK£359.4b | UK£29.7b | 16.9x | 13x | 1.1x |
| Fri, 29 Sep 2023 | UK£395.0b | UK£354.5b | UK£28.9b | 16.9x | 13.7x | 1.1x |
| Sun, 27 Aug 2023 | UK£401.4b | UK£354.5b | UK£28.7b | 15.7x | 14x | 1.1x |
| Tue, 25 Jul 2023 | UK£408.7b | UK£352.1b | UK£25.7b | 16.6x | 15.9x | 1.2x |
| Thu, 22 Jun 2023 | UK£401.1b | UK£354.4b | UK£25.7b | 15.6x | 15.6x | 1.1x |
| Sat, 20 May 2023 | UK£427.5b | UK£355.7b | UK£25.7b | 16.8x | 16.6x | 1.2x |
| Mon, 17 Apr 2023 | UK£429.5b | UK£351.0b | UK£25.8b | 16x | 16.6x | 1.2x |
| Wed, 15 Mar 2023 | UK£412.5b | UK£346.7b | UK£25.9b | 15.3x | 15.9x | 1.2x |
| Fri, 10 Feb 2023 | UK£416.6b | UK£341.1b | UK£24.3b | 15x | 17.1x | 1.2x |
| Sun, 08 Jan 2023 | UK£427.4b | UK£339.3b | UK£24.0b | 14.8x | 17.8x | 1.3x |
| Tue, 06 Dec 2022 | UK£429.5b | UK£344.3b | UK£24.0b | 14.8x | 17.9x | 1.2x |
| Thu, 03 Nov 2022 | UK£405.0b | UK£339.7b | UK£25.1b | 13.6x | 16.1x | 1.2x |
| Sat, 01 Oct 2022 | UK£405.8b | UK£339.9b | UK£25.8b | 13.2x | 15.7x | 1.2x |
| Mon, 29 Aug 2022 | UK£444.1b | UK£344.3b | UK£26.6b | 15.7x | 16.7x | 1.3x |
Price to Earnings Ratio
16.7x
Current Industry PE
- Investors are pessimistic on the British Consumer Staples industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 22.6x which is lower than its 3-year average PE of 39.8x.
- The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Consumer Staples industry have declined 12% per year over the last three years,
- Revenues have also declined 4.9% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.K. Consumer Staples sector?
| GB Market | -2.77% | |
| Consumer Staples | 3.40% | |
| Personal Products | 3.98% | |
| Beverage | 3.40% | |
| Tobacco | 3.39% | |
| Food and Staples Retail | 3.08% | |
| Household Products | 2.98% | |
| Food | 2.19% | |
Industry PE
- Investors are most optimistic about the Household Products industry which is trading above its 3-year average PE ratio of 20.6x.
- Analysts are expecting annual earnings growth of 15.5%, which is lower than the prior year's growth of 51.7% per year.
- Investors are most pessimistic about the Food industry, which is trading below its 3-year average of 16.7x.
Forecasted Growth
- Analysts are most optimistic on the Household Products industry, expecting annual earnings growth of 15% over the next 5 years.
- However this is lower than its past earnings growth rate of 52% per year.
- In contrast, the Food and Staples Retail industry is expected to see its earnings grow by 8.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ULVR Unilever | UK£46.94 | 4.0% +UK£4.5b | -2.0% | PE24.3x | |
| BATS British American Tobacco | UK£43.93 | 3.7% +UK£3.4b | 58.8% | PE31.5x | |
| DGE Diageo | UK£21.16 | 4.4% +UK£2.0b | -15.4% | PE26.8x | |
| TSCO Tesco | UK£4.32 | 4.2% +UK£1.1b | 24.5% | PE17.5x | |
| RKT Reckitt Benckiser Group | UK£56.32 | 3.0% +UK£1.1b | 31.3% | PE30.5x |
