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Rentokil Initial plc (RTO) Fair Value & Analysis

Industrials · US · Market cap $14.3B

RI Rentokil Initial plc logo Rentokil Initial plc RTO · US
Price$24.46
Fair Value$19.63
Upside-19.8%
Quality52/100
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Healthy Growth
Thin margins · 6.8% net margin
Moderate debt · generates free cash flow
2.17% dividend yield
Trails peers (5/15)
Narrow moat 43/100
Evidence: High Range $14.01 – $24.54 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price −19.2% over the past month.

A solid business, but screening 20% overvalued on our models.

What matters now

  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from $14.01 (bear) to $24.54 (bull), base $19.63. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 52/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$39.60 $19.43 Fair Value $19.63 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $19.43 – $39.60 · fair‑value band $14.01 – $24.54 · the $24.46 price screens above the $19.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Rentokil Initial plc (RTO) currently trades at $24.46, while our model-based Fair Value estimate is $19.63, implying the stock looks roughly 19.8% overvalued today. We read business quality at 52/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rentokil Initial plc generated revenue of $6.9B at a net margin of 6.8%. Revenue grew 5.8% year over year. It earns a return on equity of 5.4%. Net debt stands at $3.8B. Fundamentals as of Jul 18, 2026

Our scenario range runs from $14.01 (bear case) to $24.54 (bull case); at $24.46, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -20%, RTO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $14.30 $23.50 $36.90 80
Residual Income $9.29 $10.07 $12.23 76
Rev-Margin DCF $13.20 $23.65 $35.91 74
All 26 models by family
DCF Models
FCF DCF $14.06 $24.61 $41.05 38
Owner Earnings $15.35 $26.67 $44.31 31
5Y Revenue Exit $13.20 $23.68 $37.17 39
5Y EBITDA Exit $19.61 $35.87 $55.11 41
5Y P/E Exit $10.67 $18.88 $27.53 38
10Y Revenue Exit $12.81 $22.53 $35.82 36
10Y EBITDA Exit $17.46 $31.06 $49.72 37
10Y P/E Exit $11.72 $19.17 $28.36 35
Earnings-Based
Graham-Dodd $6.36 $21.33 $28.58 54
Lynch FV $4.86 $6.94 $9.02 50
PEG = 1.0 $4.86 $6.94 $9.02 46
EPV $12.35 $15.02 $17.35 59
Dividend Discount
Gordon GGM $5.55 $11.54 $18.31 70
DDM Multi-Stage $5.55 $9.51 $12.11 61
Multiples
P/E Multiple $14.02 $18.70 $23.37 63
P/S Multiple $11.92 $15.89 $19.86 58
P/B Multiple $11.92 $15.89 $19.86 55
EV/EBIT $21.72 $30.18 $38.63 53
EV/EBITDA $25.59 $35.33 $45.08 54
EV/Revenue $13.45 $20.78 $28.11 43
Asset-Based
NCAV (Graham) $5.45 $7.31 $10.91 50
Growth DCF
Growth DCF $14.30 $23.50 $36.90 80
Rev-Margin DCF $13.20 $23.65 $35.91 74
Economic Profit
Residual Income $9.29 $10.07 $12.23 76
ROIC Compounder $12.78 $17.40 $23.38 72
Growth Earnings
Growth-Adj P/E $11.98 $17.11 $22.24 68

Widest divergence: DCF Models ($23.68) versus Earnings-Based ($6.94). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $6.9B
Revenue growth (YoY) +5.8%
Net margin 6.8%
Return on equity 5.4%
Free cash flow $770M FY2025
P/E ratio 50.0
More key figures
Operating margin 13.0%
EPS (TTM) $0.5700
Dividend yield 2.2%
EPS growth (YoY) +95.2%
Net debt $3.8B FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 56 · Market factors (momentum, volatility) 43

Profitability 33
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 39
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. The company offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$6.9B
Latest YoY
+27.2%
Avg. growth/yr (3Y)
+23.0%
Avg. growth/yr (5Y)
+19.9%
Avg. growth/yr (40Y)
+10.1%
Revenue +23.7%/yr
FY21 $3.0B
FY22 $3.7B
FY23 $5.4B
FY24 $5.4B
FY25 $6.9B
Net income +15.6%/yr
FY21 $263M
FY22 $232M
FY23 $381M
FY24 $307M
FY25 $470M

RTO screens 20% overvalued. Compare with Cintas Corporation →

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Cite: Fair Value Calculator (2026). "Rentokil Initial plc Fair Value". https://www.fairvalue-calculator.com/stock/RTO

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Business Services · 255 stocks

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.

Quality Score 52 · Below median
Fair Value upside −20% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 13% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 2.2% · Below median
Debt / equity 0.76× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 50.0× · Pricier than 75% of peers
P/B 2.61× · Pricier than median
P/S (TTM) 2.08× · Pricier than median
P/FCF 18.6× · Pricier than 75% of peers
EV/EBITDA 13.1× · Pricier than median
PEG 0.86× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 7 · sector 28
FUTURE 29 · sector 25
PAST 22 · sector 33
HEALTH 62 · sector 92
DIVIDEND 43 · sector 53

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is Rentokil Initial plc (RTO) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $19.63 versus a price of $24.46, about −20% (overvalued).
What is the fair value of RTO?
Our model-based fair value for Rentokil Initial plc is $19.63 (as of Jul 18, 2026), built from audited fundamentals. The current price is $24.46.
What is the quality score of RTO?
Rentokil Initial plc has a Quality Score of 52/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Rentokil Initial plc (RTO)?
Rentokil Initial plc reported trailing-twelve-month revenue of about $6.9B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of RTO?
The net profit margin of Rentokil Initial plc is about 6.8%, meaning it keeps roughly 6.8% of revenue as net income. Based on the latest reported figures.
Does Rentokil Initial plc pay a dividend?
Rentokil Initial plc currently shows a dividend yield of about 2.17% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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