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Reckitt Benckiser Group (RKT) Fair Value & Analysis

Consumer Defensive · GB · Market cap 31.9B GBX

RB Reckitt Benckiser Group RKT · LSE
Price£51.14
Fair Value£63.74
Upside+24.6%
Quality75/100
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Weak Growth
Highly profitable · 22.4% net margin
Moderate debt · generates free cash flow
4.25% dividend yield
Mixed vs. peers (8/15)
Wide moat 79/100
Evidence: High Range £36.55 – £110.47 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated yesterday

Share price +2.3% over the past month.

A strong business, screening 25% undervalued on our models.

What matters now

  • The model range is unusually wide (£36.55 to £110.47). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from £36.55 (bear) to £110.47 (bull), base £63.74. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 75/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£63.56 £37.66 Fair Value £63.74 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £37.66 – £63.56 · fair‑value band £36.55 – £110.47 · the £51.14 price screens below the £63.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Reckitt Benckiser Group (RKT) currently trades at £51.14, while our model-based Fair Value estimate is £63.74, implying the stock looks roughly 24.6% undervalued today. The Quality Score stands at 75/100 (high quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Reckitt Benckiser Group generated revenue of £14.2B at a net margin of 22.4%. Revenue declined 2.6% year over year. It earns a return on equity of 44.2%. Net debt stands at £6.5B. Fundamentals as of Aug 13, 2026

Our scenario range runs from £36.55 (bear case) to £110.47 (bull case); at £51.14, 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. For context, the median of 10 Consumer Defensive peers we cover trades at -38% fair-value upside, at 25%, RKT 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 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. Evidence
Highest evidence
Growth DCF £22.19 £35.12 £52.99 80
Residual Income £35.03 £48.56 £428.18 76
Rev-Margin DCF £16.35 £29.01 £42.88 74
All 25 models by family
DCF Models
FCF DCF £21.39 £35.48 £55.89 38
Owner Earnings £44.96 £70.12 £106.56 31
5Y Revenue Exit £16.35 £28.69 £43.88 39
5Y EBITDA Exit £42.93 £76.54 £114.68 41
5Y P/E Exit £46.60 £83.14 £120.17 38
10Y Revenue Exit £17.26 £28.72 £42.97 36
10Y EBITDA Exit £34.64 £61.26 £95.12 37
10Y P/E Exit £36.94 £65.75 £99.17 35
Earnings-Based
Graham-Dodd £34.07 £86.03 £111.77 54
PEG = 1.0 £15.89 £22.70 £29.51 46
EPV £45.12 £54.08 £61.91 59
Dividend Discount
Gordon GGM £20.29 £38.68 £64.78 70
DDM Multi-Stage £20.29 £30.82 £42.23 61
Multiples
P/E Multiple £78.92 £105.22 £131.53 63
P/S Multiple £26.84 £35.79 £44.74 58
P/B Multiple £50.31 £67.09 £83.86 55
EV/EBIT £76.07 £104.29 £132.51 53
EV/EBITDA £63.81 £87.94 £112.08 54
EV/Revenue £14.89 £24.96 £35.02 43
Asset-Based
NCAV (Graham) £6.10 £8.17 £12.20 50
Growth DCF
Growth DCF £22.19 £35.12 £52.99 80
Rev-Margin DCF £16.35 £29.01 £42.88 74
Economic Profit
Residual Income £35.03 £48.56 £428.18 76
ROIC Compounder £47.65 £60.37 £73.99 72
Growth Earnings
Growth-Adj P/E £61.00 £87.14 £113.28 68

Widest divergence: Growth Earnings (£87.14) versus Asset-Based (£8.17). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 14.2B GBX
Revenue growth (YoY) -2.6%
Net margin 22.4%
Return on equity 44.2%
Free cash flow 1.8B GBX FY2025
P/E ratio 10.5
More key figures
Operating margin 26.7%
EPS (TTM) £4.89
Dividend yield 4.3%
EPS growth (YoY) -13.2%
Net debt 6.5B GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 70 · Market factors (momentum, volatility) 54

Profitability 73
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 100
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

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally. The company offers germ protection under Dettol name; intimate wellness under Durex and KY brand names; over the counter under the Biofreeze, Gaviscon, Mucinex, Nurofen, Delsym, Cepacol, and Strepsils names.

Full company description

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally. The company offers germ protection under Dettol name; intimate wellness under Durex and KY brand names; over the counter under the Biofreeze, Gaviscon, Mucinex, Nurofen, Delsym, Cepacol, and Strepsils names. It also provides personal care products under Clearasil and Veet brand names; vitamins, minerals, and supplements under MegaRed, Airborne, Digestive-Advantage, Movefree, and neuriva names; stain removal under Vanish brand name; and disinfectant products under the Finish, Harpic, and Lysol brands. In addition, the company offers nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. Reckitt Benckiser Group plc was founded in 1819 and is headquartered in Slough, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Reckitt Benckiser Group reported revenue of £14.2B in FY2025 versus £13.2B in FY2021, a compound +1.8%/yr. Reported net income was £3.2B in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£14.2B
Latest YoY
+0.3%
Avg. growth/yr (3Y) 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.
−0.6%
Avg. growth/yr (5Y) 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.
+0.3%
Avg. growth/yr (23Y) 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.
+6.3%
Revenue +1.8%/yr
FY21 £13.2B
FY22 £14.5B
FY23 £14.6B
FY24 £14.2B
FY25 £14.2B
Net income
FY21 −£32.0M
FY22 £2.3B
FY23 £1.6B
FY24 £1.4B
FY25 £3.2B
Character of growth · EPS growth decomposed (2014-2025) +2.5 % p.a.
Revenue per share +5.7 pp

of which total revenue +5.2 pp · buybacks/dilution +0.5 pp

EBIT margin −1.6 pp
Tax rate −0.5 pp
Residual (interest, one-offs) −1.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Reckitt Benckiser Group Fair Value". https://www.fairvalue-calculator.com/stock/RKT.LSE

Recent news

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

Peer Group

Household & Personal Products · 251 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 75 · Top 25%
Fair Value upside +24% · Above median
Return on equity (TTM) 44% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 27% · Top 25%
Revenue growth -3% · Below median
Dividend yield (TTM) 4.3% · Above median
Debt / equity 0.96× · Higher than 75% of peers

Valuation Multiples vs Household & Personal Products median · lower = cheaper

P/E (TTM) 10.5× · Cheaper than 75% of peers
P/B 5.55× · Pricier than 75% of peers
P/S (TTM) 3.03× · Pricier than 75% of peers
P/FCF 24.4× · Pricier than 75% of peers
EV/EBITDA 12.9× · Pricier than median
PEG 2.40× · Pricier than median

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 65 · sector 28
FUTURE 0 · sector 4
PAST 100 · sector 27
HEALTH 52 · sector 98
DIVIDEND 85 · sector 50

Insider activity: 30/100

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 Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
The Procter & Gamble Company PG $146.80 $108.16 -26%
Unilever PLC ULN 1,080 MXN 973.58 MXN -10%
Hindustan Unilever Limited HINDUNILVR ₹2,063 ₹789.46 -62%
Essity AB ESSITYA kr 276.50 kr 250.02 -10%
Godrej Consumer Products Limited GODREJCP ₹936.90 ₹367.64 -61%
Marico Limited MARICO ₹855.00 ₹233.05 -73%
APR Co 278470 397,000 KRW 137,521 KRW -65%
Dabur India Limited DABUR ₹411.25 ₹175.59 -57%
PT Unilever Indonesia Tbk UNVR 1,760 IDR 1,928 IDR +10%
Amorepacific Corporation 090430 135,700 KRW 84,785 KRW -38%

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Frequently asked questions

Is Reckitt Benckiser Group (RKT) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £63.74 versus a price of £51.14, about +25% (undervalued).
What is the fair value of RKT?
Our model-based fair value for Reckitt Benckiser Group is £63.74 (as of Aug 13, 2026), built from audited fundamentals. The current price is £51.14.
What is the quality score of RKT?
Reckitt Benckiser Group has a Quality Score of 75/100. 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 revenue of Reckitt Benckiser Group (RKT)?
Reckitt Benckiser Group reported trailing-twelve-month revenue of about £14.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RKT?
The net profit margin of Reckitt Benckiser Group is about 22.4%, meaning it keeps roughly 22.4% of revenue as net income. Based on the latest reported figures.
Does Reckitt Benckiser Group pay a dividend?
Reckitt Benckiser Group currently shows a dividend yield of about 4.73% relative to its recent price (as of Aug 13, 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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