Reckitt Benckiser Group plc

LSE:RKT Stock Report

Market Cap: UK£34.4b

Reckitt Benckiser Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Discounted Cash Flow
Simply Wall St
UK£69.67
Fair Value
28.0% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: RKT (£50.14) is trading below our estimate of fair value (£69.67)

Significantly Below Fair Value: RKT is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RKT. This is calculated by dividing RKT's market cap by their current earnings.
What is RKT's PE Ratio?
PE Ratio22.3x
EarningsUK£1.54b
Market CapUK£34.39b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RKT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.7x
HLN Haleon
28x10.7%UK£33.8b
MCB McBride
6.5x3.2%UK£216.7m
ULVR Unilever
20.2x7.2%UK£113.6b
KMB Kimberly-Clark
16.3x2.5%US$42.2b
RKT Reckitt Benckiser Group
22.3x10.8%UK£34.4b

Price-To-Earnings vs Peers: RKT is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

How does RKT's PE Ratio compare vs other companies in the Global Household Products Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RKT 22.3xIndustry Avg. 17.2xNo. of Companies16PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RKT is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the Global Household Products industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is RKT'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.

RKT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: RKT is good value based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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 RKT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£50.14
UK£57.42
+14.5%
13.6%UK£77.00UK£44.00n/a17
Jan ’26UK£48.33
UK£56.16
+16.2%
12.9%UK£71.70UK£44.00n/a17
Dec ’25UK£48.60
UK£55.90
+15.0%
13.5%UK£71.70UK£44.00n/a17
Nov ’25UK£49.94
UK£55.72
+11.6%
12.5%UK£71.70UK£44.00n/a17
Oct ’25UK£45.50
UK£54.99
+20.9%
13.4%UK£71.70UK£44.00n/a16
Sep ’25UK£43.66
UK£55.05
+26.1%
13.3%UK£71.70UK£44.00n/a16
Aug ’25UK£40.98
UK£55.18
+34.6%
13.0%UK£71.70UK£44.00n/a16
Jul ’25UK£42.89
UK£55.67
+29.8%
13.8%UK£71.70UK£44.00n/a16
Jun ’25UK£44.52
UK£56.04
+25.9%
13.6%UK£71.70UK£44.00n/a16
May ’25UK£44.76
UK£56.29
+25.8%
13.9%UK£71.70UK£44.00n/a16
Apr ’25UK£45.12
UK£58.23
+29.1%
14.2%UK£71.70UK£41.00n/a16
Mar ’25UK£51.44
UK£61.77
+20.1%
10.7%UK£71.70UK£46.00n/a17
Feb ’25UK£56.90
UK£63.71
+12.0%
11.0%UK£75.00UK£46.00n/a17
Jan ’25UK£54.20
UK£64.83
+19.6%
11.5%UK£76.00UK£46.00UK£48.3318
Dec ’24UK£54.16
UK£66.68
+23.1%
8.4%UK£77.00UK£59.00UK£48.6018
Nov ’24UK£55.42
UK£68.07
+22.8%
8.1%UK£77.00UK£59.00UK£49.9418
Oct ’24UK£57.94
UK£70.24
+21.2%
8.1%UK£77.00UK£58.00UK£45.5017
Sep ’24UK£57.10
UK£70.26
+23.0%
7.8%UK£77.00UK£62.00UK£43.6618
Aug ’24UK£58.02
UK£70.43
+21.4%
7.5%UK£77.00UK£62.00UK£40.9818
Jul ’24UK£59.12
UK£72.12
+22.0%
7.8%UK£84.00UK£62.50UK£42.8918
Jun ’24UK£62.80
UK£71.16
+13.3%
10.2%UK£84.00UK£49.75UK£44.5219
May ’24UK£64.30
UK£69.70
+8.4%
11.4%UK£84.00UK£49.75UK£44.7619
Apr ’24UK£61.58
UK£68.06
+10.5%
11.0%UK£80.00UK£49.75UK£45.1219
Mar ’24UK£58.50
UK£68.28
+16.7%
11.3%UK£80.00UK£49.75UK£51.4419
Feb ’24UK£56.94
UK£68.33
+20.0%
11.3%UK£80.00UK£49.75UK£56.9019
Jan ’24UK£57.54
UK£68.73
+19.4%
11.9%UK£82.00UK£49.75UK£54.2019
Analyst Price Target
Consensus Narrative from 17 Analysts
UK£57.42
Fair Value
12.7% undervalued intrinsic discount
17
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 Analysis2025/01/17 02:12
End of Day Share Price 2025/01/17 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Reckitt Benckiser Group plc is covered by 54 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kamla SinghAlphaValue
Pedro Gil Garcia AlejoBanco Santander
Susanne SeibelBarclays