Rentokil Initial plc

BATS-CHIXE:RTOL Stock Report

Market Cap: UK£11.2b

Rentokil Initial Valuation

Is RTOL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of RTOL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: RTOL (£4.45) is trading below our estimate of future cash flow value (£7.21)

Significantly Below Future Cash Flow Value: RTOL is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RTOL?

Key metric: As RTOL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RTOL. This is calculated by dividing RTOL's market cap by their current earnings.
What is RTOL's PE Ratio?
PE Ratio51.7x
EarningsUS$290.00m
Market CapUS$14.99b

Price to Earnings Ratio vs Peers

How does RTOL's PE Ratio compare to its peers?

The above table shows the PE ratio for RTOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
MTO Mitie Group
23.5x20.15%UK£1.9b
SRP Serco Group
15.6x8.27%UK£2.3b
ITRK Intertek Group
26x7.97%UK£8.9b
EXPN Experian
21.1x10.11%UK£23.6b
RTOL Rentokil Initial
51.7x19.74%UK£11.2b

Price-To-Earnings vs Peers: RTOL is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the peer average (21.5x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does RTOL's PE Ratio compare vs other companies in the European Commercial Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies14PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RTOL is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the European Commercial Services industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is RTOL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RTOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.7x
Fair PE Ratio33.4x

Price-To-Earnings vs Fair Ratio: RTOL is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the estimated Fair Price-To-Earnings Ratio (33.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RTOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.45
UK£5.29
+19.07%
8.82%UK£6.30UK£4.54n/a19
Jun ’27UK£4.40
UK£5.30
+20.55%
8.90%UK£6.30UK£4.54n/a19
May ’27UK£4.99
UK£5.28
+5.78%
9.05%UK£6.30UK£4.54n/a18
Apr ’27UK£4.75
UK£5.17
+8.79%
10.70%UK£5.75UK£3.52n/a17
Mar ’27UK£4.60
UK£4.89
+6.47%
12.40%UK£5.70UK£3.52n/a17
Feb ’27UK£4.51
UK£4.78
+5.88%
14.95%UK£5.70UK£3.00n/a18
Jan ’27UK£4.46
UK£4.65
+4.39%
15.31%UK£5.70UK£3.00n/a17
Dec ’26UK£4.22
UK£4.56
+8.10%
14.67%UK£5.70UK£3.00n/a17
Nov ’26UK£4.20
UK£4.49
+7.01%
16.32%UK£5.70UK£2.84n/a16
Oct ’26UK£3.78
UK£4.16
+10.07%
15.63%UK£5.50UK£2.84n/a15
Sep ’26UK£3.61
UK£4.25
+17.73%
13.35%UK£5.50UK£3.13n/a14
Aug ’26UK£3.60
UK£4.23
+17.25%
14.04%UK£5.50UK£3.00n/a14
Jul ’26UK£3.52
UK£4.20
+19.34%
13.43%UK£5.50UK£3.00UK£4.3715
Jun ’26UK£3.52
UK£4.22
+19.75%
15.41%UK£5.50UK£3.00UK£4.4016
May ’26UK£3.45
UK£4.28
+23.95%
13.51%UK£5.50UK£3.45UK£4.9917
Apr ’26UK£3.55
UK£4.31
+21.31%
13.58%UK£5.50UK£3.45UK£4.7517
Mar ’26UK£3.99
UK£4.56
+14.26%
15.55%UK£6.20UK£3.45UK£4.6017
Feb ’26UK£4.00
UK£4.55
+13.66%
15.61%UK£6.20UK£3.45UK£4.5117
Jan ’26UK£3.98
UK£4.56
+14.59%
15.24%UK£6.20UK£3.60UK£4.4617
Dec ’25UK£3.94
UK£4.58
+16.38%
16.25%UK£6.20UK£3.60UK£4.2217
Nov ’25UK£3.91
UK£4.60
+17.62%
15.77%UK£6.20UK£3.60UK£4.2017
Oct ’25UK£3.66
UK£4.75
+29.79%
14.36%UK£6.20UK£3.60UK£3.7817
Sep ’25UK£4.83
UK£5.54
+14.58%
12.15%UK£6.75UK£4.54UK£3.6117
Aug ’25UK£4.64
UK£5.54
+19.29%
12.15%UK£6.75UK£4.54UK£3.6017
Jul ’25UK£4.64
UK£5.53
+19.12%
15.47%UK£6.75UK£3.55UK£3.5217
UK£5.29
Fair Value
16.0% undervalued intrinsic discount
19
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/06 02:33
End of Day Share Price 2026/07/06 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Rentokil Initial plc is covered by 28 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul Daniel SullivanBarclays
James RosenthalBarclays
Jane SparrowBarclays