Rentokil Initial PLC
NYSE:RTO

Watchlist Manager
Rentokil Initial PLC Logo
Rentokil Initial PLC
NYSE:RTO
Watchlist
Price: 34.08 USD 1.46% Market Closed
Market Cap: $17.1B

EV/EBIT

23.6
Current
20%
More Expensive
vs 3-y average of 19.6

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
23.6
=
Enterprise Value
$15.3B
/
EBIT
£658m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
23.6
=
Enterprise Value
$15.3B
/
EBIT
£658m

Valuation Scenarios

Rentokil Initial PLC is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (19.6), the stock would be worth $28.31 (17% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
56%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 23.6 $34.08
0%
3-Year Average 19.6 $28.31
-17%
5-Year Average 22 $31.77
-7%
Industry Average 0.1 $0.07
-100%
Country Average 0 $0.04
-100%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$15.3B
/
Jan 2026
£658m
=
23.6
Current
$15.3B
/
Dec 2026
£1.2B
=
12.6
Forward
$15.3B
/
Dec 2027
£1.3B
=
11.5
Forward
$15.3B
/
Dec 2028
£1.4B
=
10.7
Forward
$15.3B
/
Dec 2031
£1.6B
=
9.7
Forward
$15.3B
/
Dec 2032
£1.7B
=
9
Forward
$15.3B
/
Dec 2033
£1.8B
=
8.3
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Higher than 97% of companies in United Kingdom
Percentile
97th
Based on 1 864 companies
97th percentile
33.4
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 015

Rentokil Initial PLC
Glance View

Rentokil Initial PLC has woven itself into the fabric of global business services with a legacy that stretches back to 1925. Emerging from its humble beginnings focused on pest control, the company has rooted its operations in hygiene, protection, and well-being. As the world evolved, so did Rentokil, fortifying its position across the globe by acquiring local businesses that allowed it to blend local expertise with its overarching proficiency. This strategy has effectively cast a wide net across various sectors including pest control, hygiene solutions, and workwear services, proving its resilience and adaptability in a competitive industry. By leveraging its diverse portfolio, the company not only addresses the broad and varying needs of businesses but ensures a steady stream of revenue through service contracts and repeat business, driven by necessity and compliance. Through meticulous service delivery backed by technological advancements, Rentokil Initial crafts its revenue streams. Pest control, which remains a core service, taps into a universal need for safe, pest-free environments in both residential and commercial spaces. Hygiene solutions have become more critical, especially in a post-pandemic world where cleanliness and health precautions drive demand. Here, Rentokil Initial's offering spans washroom services, air purification, and consumable supplies, meeting regulatory standards and client expectations alike. Meanwhile, the lesser-known workwear segment contributes by providing rental and laundering services, aligning with the growing trend of uniformed professionalism across industries. Each service compartment ensures a stable financial inflow as businesses worldwide continue to prioritize the safety, health, and image of their establishments.

RTO Intrinsic Value
35.29 USD
Undervaluation 3%
Intrinsic Value
Price $34.08
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett