Reckitt Benckiser Group plc

LSE:RKT Stock Report

Market Cap: UK£33.0b

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.

Below Fair Value: RKT (£47.83) is trading below our estimate of fair value (£67.41)

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 Ratio21.4x
EarningsUK£1.54b
Market CapUK£32.98b

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 Average17.6x
HLN Haleon
27.4x10.6%UK£33.1b
MCB McBride
5.4x-0.2%UK£181.0m
ULVR Unilever
20.3x4.6%UK£112.8b
KMB Kimberly-Clark
17.4x2.2%US$44.7b
RKT Reckitt Benckiser Group
21.4x11.3%UK£33.0b

Price-To-Earnings vs Peers: RKT is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (17.6x).

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 21.4xIndustry Avg. 17.3xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RKT is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the Global Household Products industry average (17.3x).

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 Ratio21.4x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: RKT is good value based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (26x).

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£47.83
UK£56.19
+17.5%
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£46.00n/a18
Dec ’24UK£54.16
UK£66.68
+23.1%
8.4%UK£77.00UK£59.00n/a18
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
Dec ’23UK£60.38
UK£69.82
+15.6%
11.8%UK£86.00UK£49.75UK£54.1620
Nov ’23UK£57.50
UK£70.29
+22.2%
12.5%UK£86.00UK£52.22UK£55.4219

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

Discover undervalued companies

Ontex Group

€603.7m

Develops, produces, and supplies personal hygiene products and solutions for baby, feminine, and adult care in Belgium, the United Kingdom, the United States, Italy, France, and internationally.

0QVQ

€7.44

7D

-2.1%

1Y

5.6%

McBride

UK£181.0m

Manufactures and sells private label household and personal care products to retailers and brand owners in the United Kingdom, Germany, France, Italy, Spain, rest of Europe, Asia-Pacific, and internationally.It operates through five segments: Liquids, Powders, Unit dosing, Aerosols, and Asia Pacific.

MCBL

UK£1.04

7D

-4.1%

1Y

73.3%

Suominen Oyj

€174.5m

Manufactures and sells nonwovens as roll goods for wipes and other applications in Finland, the Americas, the rest of Europe, and internationally.

0M1M

€2.65

7D

0%

1Y

-47.8%