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Rentokil Initial PLC (RTO) Fair Value & Analysis

Industrials · US · Market cap $14.3B · ISIN US7601251041

What is Rentokil Initial PLC really worth?

RI Rentokil Initial PLC logo Rentokil Initial PLC RTO · US
Price$24.02
Fair Value$19.63
Upside−18.3%
Quality56/100

A solid business, but trading 22% above our fair value of $19.63.

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Strengths

Healthy Growth (revenue 5y +19.9 %/yr)
Moderate debt · generates free cash flow

Risks

!Thin margins · 6.8% net margin
!Trails peers (5/15)
!Narrow moat 43/100
!Weak on valuation: 9 out of 100
!Weak on future: 29 out of 100
!Weak on past: 22 out of 100

For context

·2.17% dividend yield
Evidence: High Range $13.81 – $24.54

Fair value as of: Aug 19, 2026

From 26 valuation models · updated 17 days ago

Share price −4.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (56/100) 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.

Price vs Fair Value (5 years)

$39.60 $19.43 Fair Value $19.63 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range $19.43 – $39.60 · fair‑value band $13.81 – $24.54 · the $24.02 price screens above the $19.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Rentokil Initial PLC (RTO) currently trades at $24.02, while our model-based Fair Value estimate is $19.63, implying the stock looks roughly 22.4% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $23.68 per share, and 6 of the 26 models we run sit above the $24.02 price. Bear case: the Earnings-Based group reads lowest at $6.94, and 20 of the 26 models stay below the price. Evidence for this calculation is 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 Aug 19, 2026

Our scenario range runs from $13.81 (bear case) to $24.54 (bull case); at $24.02, 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 31% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at −18%, RTO screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.3030 per share, which is 1.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF $14.06 $24.61 $41.05 78
Growth DCF $14.30 $23.50 $36.90 77
Residual Income $9.29 $10.07 $12.23 76
All 26 models by family
DCF Models
FCF DCF $14.06 $24.61 $41.05 78
Owner Earnings $15.35 $26.67 $44.31 74
5Y Revenue Exit $13.20 $23.68 $37.17 71
5Y EBITDA Exit $19.61 $35.87 $55.11 74
5Y P/E Exit $11.08 $19.66 $28.71 70
10Y Revenue Exit $12.81 $22.53 $35.82 65
10Y EBITDA Exit $17.46 $31.06 $49.72 67
10Y P/E Exit $11.98 $19.71 $29.27 63
Earnings-Based
Graham-Dodd $6.36 $21.33 $28.58 64
Lynch FV $4.86 $6.94 $9.02 61
PEG = 1.0 $4.86 $6.94 $9.02 57
EPV $12.35 $15.02 $17.35 74
Dividend Discount
Gordon GGM $5.55 $11.54 $18.31 66
DDM Multi-Stage $5.55 $9.51 $12.11 66
Multiples
P/E Multiple $14.72 $19.63 $24.54 63
P/S Multiple $11.92 $15.89 $19.86 58
P/B Multiple $11.92 $15.89 $19.86 55
EV/EBIT $20.31 $28.30 $36.28 66
EV/EBITDA $25.59 $35.33 $45.08 67
EV/Revenue $13.45 $20.78 $28.11 53
Asset-Based
NCAV (Graham) $5.45 $7.31 $10.91 54
Growth DCF
Growth DCF $14.30 $23.50 $36.90 77
Rev-Margin DCF $13.20 $23.65 $35.91 71
Economic Profit
Residual Income $9.29 $10.07 $12.23 76
ROIC Compounder $12.78 $17.40 $23.38 71
Growth Earnings
Growth-Adj P/E $12.50 $17.86 $23.22 67

Widest divergence: DCF Models ($23.68) versus Earnings-Based ($6.94). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 42.1
P/S ratio 2.87 P/E × margin
EPS (TTM) $0.5700 price ÷ EPS = P/E 42.1
Dividend yield 2.2% payout 91.4%
Net margin 6.8% FY2025
Return on equity 5.4% TTM
More key figures
Profitability
Return on assets (EBIT) 5.6% avg 5y
Operating margin 13.0% TTM
Growth
Revenue (TTM) $6.9B TTM
Revenue growth (YoY) +5.8% 3y avg +23.0%
EPS growth (YoY) +95.2%
Balance sheet & cash flow
Free cash flow $770M FY2025
Net debt $3.8B FY2025 · ≈ 4.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 56 · Market factors (momentum, volatility) 40

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 78
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 24
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. revenue 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.
+23.0%
Avg. revenue 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.
+19.9%
Avg. revenue growth/yr (40Y) 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.
+10.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.9% (5.7 + 2.2)
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
Character of growth · EPS growth decomposed (2014-2025) +8.0 % p.a.
Revenue per share +9.5 %

of which total revenue +13.5 % · buybacks/dilution −3.5 %

EBIT margin +1.0 %
Tax rate +0.0 %
Residual (interest, one-offs) −2.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RTO screens 22% 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

Earlier news

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

Peer Group

Specialty Business Services · 248 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 56 · Above median
Fair Value upside −18% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 4% · Below 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) 42.1× · 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE9 · sector 25
FUTURE29 · sector 27
PAST22 · sector 36
HEALTH62 · sector 92
DIVIDEND43 · sector 48

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

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $204.15 $95.19 −53%
RELX PLC RELX $34.55 $32.24 −7%
Thomson Reuters Corporation TRI C$142.85 C$70.40 −51%
Copart, Inc CPRT $32.76 $28.59 −13%
Global Payments Inc GPN $91.05 $68.98 −24%
RB Global, Inc RBA C$119.68 C$68.30 −43%
Brambles Limited BXB A$19.47 A$17.27 −11%
UL Solutions Inc ULS $74.43 $33.62 −55%
Wolters Kluwer N.V WKL €68.88 €101.27 +47%
Aramark ARMK $59.08 $13.18 −78%

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Frequently asked questions

Is Rentokil Initial PLC (RTO) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of $19.63 versus a price of $24.02, about −18% upside (overvalued).
What is the fair value of RTO?
Our model-based fair value for Rentokil Initial PLC is $19.63 (as of Aug 19, 2026), built from audited fundamentals. The current price: $24.02.
What is the quality score of RTO?
Rentokil Initial PLC has a Quality Score of 56/100. 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 Rentokil Initial PLC (RTO)?
Rentokil Initial PLC reported trailing-twelve-month revenue of about $6.9B (latest available figure, as of Aug 19, 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 Aug 19, 2026).
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