Rentokil Initial PLC (RTO) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Rentokil Initial PLC stock $19.63, price $24.08, that is 18.5% below the price, quality 63 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $19.25 – $39.23 · fair‑value band $14.52 – $24.54 · the $24.08 price screens above the $19.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
Follow Rentokil Initial in your weekly email
Every Wednesday you see whether Rentokil Initial is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific.
Show moreShow less
The company offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management.
It provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats.
In addition, the company engages in the supply and laundering of garments for commercial organizations.
Further, the company provides a range of specialist cleaning services, such as graffiti removal, deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage cleaning, as well as specialist deep cleaning services.
Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom.
Stock analysis
Rentokil Initial PLC (RTO) currently trades at $24.08, while our model-based Fair Value estimate is $19.63, 18% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of $25.24 per share, and 10 of the 24 models we run sit above the $24.08 price.
Bear case: the Earnings-Based group reads lowest at $6.94, and 14 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $14.52 (bear) to $24.54 (bull), the price of $24.08 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Rentokil Initial PLC reported revenue of $6.9B in FY2025 versus $3.0B in FY2021, a compound +23.7%/yr. Reported net income was $470M in FY2025, compounding +15.6%/yr from FY2021.
Key figures
Market cap $12.2B Large · P/E ratio 37.6 · P/S ratio 2.56 · EPS (TTM) $0.6400 · Dividend yield 3.0% · Net margin 6.8% · Return on equity 6.0% · Return on assets (EBIT) 5.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 22% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −15% fair-value upside, at −18%, RTO screens richer than that median.
Fair Value models
Bear$14.52Fair Value $19.63Bull$24.54
Price $24.08 · Downside -18.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.4357 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+27.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.9%
Start year 2020 (pandemic). Over 10 years: +14.7% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+10.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.4%
Dividend (yield on the price)3.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.7% vs 10.4%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.11% → 14%
2025 sits 53% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+5.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +2.7% a year for the price and +1.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Scale in services offers limited support for an average moat while modest returns on equity and elevated debt stand out as the main constraints on quality.
Main risk: Generative AI and chatbots could reduce the predictability of online leads from search engines for pest-control providers like Rentokil, hitting customer acquisition and growth in North America.
Bull case: Rentokil could leverage its own AI tools like PestConnect and Optix to improve service efficiency and retention while adapting marketing to new search behaviours and consolidating further in a fragmented market.
Bear case: If AI shifts more leads to smaller local operators and PE-backed rivals intensify competition, Rentokil might see slower organic growth and margin pressure in its key North American market.
Rentokil is streamlining its portfolio by selling the SOLitude Lake Management and Vertex Aquatic Solutions businesses to Bain Capital. The move forms part of efforts to simplify operations following the Terminix integration and concentrate on core pest control and hygiene activities. Will the expected net proceeds and reduced complexity drive faster organic growth in North America, or will competitive pressures there continue to weigh on performance?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Business Services · 230 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score63 · Above median
Fair Value upside−18.5% · Below median
Profitability
Return on equity (12 months)6.0% · Below median
Return on assets3.3% · Below median
Net margin (12 months)6.7% · Above median
Operating margin (12 months)12.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)6.7% · Below median
Dividend yield (12 months)3.0% · Above median
Balance sheet
Debt / equity0.76× · Highest 25%
Valuation Multiplesvs Specialty Business Services median · lower = cheaper
P/E (12 months)37.6× · Priciest 25%
P/B2.22× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)1.71× · Pricier than median
Price / free cash flow (fiscal year)15.9× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Rentokil Initial PLC (RTO) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of $19.63 versus a price of $24.08, about 18% lower (overvalued).
What is the fair value of RTO?
Our model-based fair value for Rentokil Initial PLC is $19.63 (as of Nov 3, 2026), built from audited fundamentals. The current price: $24.08.
What is the quality score of RTO?
Rentokil Initial PLC has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Rentokil Initial PLC (RTO)?
Our model-based price target is the fair value of $19.63 (as of Nov 3, 2026) from 24 valuation models. Cautious scenario $14.52, optimistic scenario $24.54. It is a calculation from audited fundamentals, not an analyst target.
What is the Rentokil Initial PLC stock forecast for 2026?
Our models put fair value at $19.63, about 18% lower versus a price of $24.08 (overvalued). Cautious scenario $14.52, optimistic scenario $24.54. The calculation is refreshed regularly with new filings.
What is the revenue of Rentokil Initial PLC (RTO)?
Rentokil Initial PLC reported trailing-twelve-month revenue of about $7.1B (latest available figure, as of Nov 3, 2026).
Does Rentokil Initial PLC pay a dividend?
Rentokil Initial PLC currently shows a dividend yield of 3.02% relative to its recent price (as of Nov 3, 2026).
What growth is priced into Rentokil Initial PLC (RTO)?
For today's price to be fair in a discounted-cash-flow model, Rentokil Initial PLC would have to grow free cash flow by +5.1 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.9 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of RTO use?
Our models discount Rentokil Initial PLC at 8.1 %: a base by market capitalisation (large), damped by beta 0.45, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Rentokil Initial PLC that is +5.1 % per year a year over ten years, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has Rentokil Initial PLC (RTO) delivered so far?
Over the past 5 years revenue at Rentokil Initial PLC grew +19.9 % a year. The price currently implies +5.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Rentokil Initial PLC (RTO) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Rentokil Initial PLC (+5.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rentokil Initial PLC (RTO)?
The free-cash-flow yield on the price is 6.30 %: that much free cash flow Rentokil Initial PLC produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rentokil Initial PLC (RTO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rentokil Initial PLC it is $19.63 per share (as of Nov 3, 2026), against a price of $24.08. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Rentokil Initial PLC stock overvalued or undervalued in 2026?
As of Nov 3, 2026, RTO trades above its calculated fair value: price $24.08, fair value $19.63, a gap of about −18% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RTO?
No. The price is what the market pays today ($24.08); the fair value is what the company's own numbers justify ($19.63). For Rentokil Initial PLC the two are $4.45 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rentokil Initial PLC worth?
The market values Rentokil Initial PLC at about $12.2B (market capitalisation, as of Nov 3, 2026). Per share that is $24.08; our models calculate a fair value of $19.63 per share.
What do the bullish and bearish scenarios say about RTO?
Our models span a range for Rentokil Initial PLC: cautious scenario $14.52, base $19.63, optimistic $24.54 per share (as of Nov 3, 2026, price $24.08). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RTO?
Rentokil Initial PLC trades at a price-to-earnings ratio of 37.6 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $19.63 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 18.7 (reported for FY2025: 26.0). Other multiples: PEG 0.9, P/B 2.2, P/S 1.7, EV/EBITDA 11.2.
What is the PEG ratio of RTO?
The PEG ratio of Rentokil Initial PLC is 0.86 (P/E divided by earnings growth, as of Nov 3, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Rentokil Initial PLC (RTO)?
Balance-sheet figures for Rentokil Initial PLC (as of Nov 3, 2026): return on equity 6.0%, debt of 0.76 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is RTO from its 52-week high?
Rentokil Initial PLC trades at $24.08, about 30% below its 52-week high of $34.20 and 22% above the low of $19.75 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $19.63 is for.
Which stocks are comparable to Rentokil Initial PLC?
From the same area (Industrials) we also value Cintas Corporation, Thomson Reuters Corporation, Copart, Inc, Global Payments Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rentokil Initial PLC stock attractive at the current price?
The data as of Nov 3, 2026: price $24.08, calculated fair value $19.63 (−18%), Quality Score 63/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RTO calculated?
We run Rentokil Initial PLC through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $19.63, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Rentokil Initial PLC itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rentokil Initial PLC (RTO)?
The closing price on Nov 5, 2026 was $24.08. Our model-based fair value is $19.63, about 18% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rentokil Initial PLC right now?
Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder. The price sits in the upper half of our model range, so the margin of safety is thin. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Rentokil Initial PLC (RTO) come from?
Earnings per share at Rentokil Initial PLC grew +8.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.5 %, EBIT margin +1.0 %, tax rate +0.0 %, residual (interest, one-offs) −2.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Rentokil Initial PLC
How large is the market capitalisation of Rentokil Initial PLC (RTO)?
The market capitalisation of Rentokil Initial PLC is $12.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rentokil Initial PLC (RTO)?
The price-to-sales ratio of Rentokil Initial PLC is 2.56 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rentokil Initial PLC (RTO)?
Earnings per share at Rentokil Initial PLC are $0.6400 (price ÷ EPS = P/E 37.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Rentokil Initial PLC (RTO)?
The dividend yield of Rentokil Initial PLC is 3.0% (payout 81.7%, on adjusted earnings, reported 114%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Rentokil Initial PLC (RTO)?
The net margin of Rentokil Initial PLC is 6.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rentokil Initial PLC (RTO)?
The return on equity (ROE) of Rentokil Initial PLC is 6.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Rentokil Initial PLC (RTO)?
On an EBIT basis the return on assets of Rentokil Initial PLC is 5.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Rentokil Initial PLC (RTO)?
The operating margin of Rentokil Initial PLC is 12.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rentokil Initial PLC (RTO)?
Revenue at Rentokil Initial PLC is growing +6.7% versus a year earlier (3y avg +23.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Rentokil Initial PLC (RTO)?
Earnings per share at Rentokil Initial PLC are growing +4.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Rentokil Initial PLC (RTO) carry?
The net debt of Rentokil Initial PLC is $3.8B (fiscal year 2025, ≈ 4.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Rentokil Initial PLC in the live analysis
One click puts Rentokil Initial PLC on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 3, 2026