Rentokil Initial PLC
LSE:RTO

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Rentokil Initial PLC Logo
Rentokil Initial PLC
LSE:RTO
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Price: 496.6 GBX 0.59% Market Closed
Market Cap: £12.5B

P/FCFE

14.7
Current
50%
Cheaper
vs 3-y average of 29.5

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.7
=
Market Cap
GBX12.3B
/
Free Cash Flow to Equity
£853.4m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.7
=
Market Cap
GBX12.3B
/
Free Cash Flow to Equity
£853.4m

Valuation Scenarios

Rentokil Initial PLC is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (29.5), the stock would be worth GBX996.87 (101% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-99%
Maximum Upside
+101%
Average Upside
1%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 14.7 GBX496.6
0%
3-Year Average 29.5 GBX996.87
+101%
5-Year Average 29.5 GBX996.87
+101%
Industry Average 0.2 GBX7.18
-99%
Country Average 0.2 GBX6.92
-99%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
UK
Rentokil Initial PLC
LSE:RTO
12.5B GBP 14.7 26.7
US
Waste Management Inc
NYSE:WM
92.2B USD 122.9 34
US
Republic Services Inc
NYSE:RSG
63.6B USD 23.7 29.7
CA
Waste Connections Inc
TSX:WCN
56.9B CAD 24 39.9
US
Rollins Inc
NYSE:ROL
26.4B USD 34.6 49.8
US
Veralto Corp
NYSE:VLTO
21.8B USD 24.1 23.2
US
Clean Harbors Inc
NYSE:CLH
16.5B USD 57.1 41.5
CA
GFL Environmental Inc
TSX:GFL
19.5B CAD -7.1 4.9
CN
Spic Yuanda Environmental Protection Co Ltd
SSE:600292
67.1B CNY -871.6 18 531.1
US
Tetra Tech Inc
NASDAQ:TTEK
8.3B USD 20.5 23.6
CN
Hui Lyu Ecological Technology Groups Co Ltd
SZSE:001267
42.4B CNY 457.3 481

Market Distribution

Higher than 93% of companies in United Kingdom
Percentile
93rd
Based on 1 918 companies
93rd percentile
14.7
Low
0 — 0.1
Typical Range
0.1 — 0.4
High
0.4 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0.1
Median 0.2
70th Percentile 0.4
Max 901.8

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
330.26 GBX
Overvaluation 33%
Intrinsic Value
Price GBX496.6
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