Rentokil Initial PLC
LSE:RTO
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Rentokil Initial PLC
LSE:RTO
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UK |
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B
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Banco Santander SA
XMUN:BSD2
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ES |
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B
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BYD Co Ltd
DUS:BY6
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CN |
Intrinsic Value
The intrinsic value of Rentokil Initial PLC (RTO) under the Base Case is 301.29 GBX per share.
Compared with the current market price of 342.7 GBX, the stock appears
Overvalued by 12% .
The intrinsic value is calculated using the DCF method. The model assumes net margin rises from 6.8% last year to 9.9% by 2036, higher than in any of the last six years. If net margin stayed at its five-year average of 7.1%, the estimate would be about GBX 215.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Rentokil Initial Does
Rentokil Initial is a service company best known for pest control. It helps businesses and homeowners deal with rats, insects, birds, and other pests, and it also sells ongoing prevention and monitoring services so problems do not come back. In many markets it is one of the main local specialists that customers call when they need fast response and regular site visits.
- Headquarters
- United Kingdom UK
- Employees
- 63 388
- IPO date
- Jun 21, 2005
Rentokil Initial has no economic moat
Customers can choose among competing providers for pest-control and hygiene services, and one customer does not make Rentokil’s service more valuable to another. Its reach and familiar brands do not make these services exclusive or prevent established firms and local providers from competing for the same work.
Read the full moat analysis
Earnings Waterfall
Rentokil Initial PLC
The intrinsic value for Rentokil Initial PLC (RTO) under the Base Case is 301.29 GBX.
Compared with the current market price of 342.7 GBX, the stock appears Overvalued by 12% .