Rentokil Initial PLC
NYSE:RTO

Watchlist Manager
Rentokil Initial PLC Logo
Rentokil Initial PLC
NYSE:RTO
Watchlist
Price: 33.79 USD -0.24% Market Closed
Market Cap: $17B

EV/FCFF

22.1
Current
3%
More Expensive
vs 3-y average of 21.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
22.1
=
Enterprise Value
$15.3B
/
Free Cash Flow to Firm
£703m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
22.1
=
Enterprise Value
$15.3B
/
Free Cash Flow to Firm
£703m

Valuation Scenarios

Rentokil Initial PLC is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (21.3), the stock would be worth $32.68 (3% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-100%
Maximum Upside
+12%
Average Downside
48%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 22.1 $33.79
0%
3-Year Average 21.3 $32.68
-3%
5-Year Average 24.6 $37.74
+12%
Industry Average 0 $0.06
-100%
Country Average 0 $0.06
-100%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
UK
Rentokil Initial PLC
NYSE:RTO
12.5B USD 22.1 26.7
US
Waste Management Inc
NYSE:WM
92.2B USD 40.5 34
US
Republic Services Inc
NYSE:RSG
63.6B USD 31.7 29.7
CA
Waste Connections Inc
TSX:WCN
56.9B CAD 44.8 39.9
US
Rollins Inc
NYSE:ROL
26.4B USD 43.3 49.8
US
Veralto Corp
NYSE:VLTO
21.8B USD 21.2 23.2
US
Clean Harbors Inc
NYSE:CLH
16.5B USD 40.8 41.5
CA
GFL Environmental Inc
TSX:GFL
19.5B CAD 150.3 4.9
CN
Spic Yuanda Environmental Protection Co Ltd
SSE:600292
67.1B CNY -159.1 18 531.1
US
Tetra Tech Inc
NASDAQ:TTEK
8.3B USD 17.8 23.6
CN
Hui Lyu Ecological Technology Groups Co Ltd
SZSE:001267
42.4B CNY -195.3 481

Market Distribution

Higher than 96% of companies in United Kingdom
Percentile
96th
Based on 1 823 companies
96th percentile
31.1
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 1 344.9

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 4%
Intrinsic Value
Price $33.79
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