Rentokil Initial Valuation
| RTO Stock | USD 26.27 0.04 0.15% |
At this time, the company appears to be undervalued. Rentokil Initial PLC holds a recent Real Value of $30.86 per share. The prevailing price of the company is $26.27. Our model determines the value of Rentokil Initial PLC from analyzing the company fundamentals such as Operating Margin of 0.14 %, return on equity of 0.0931, and Shares Outstanding of 502.31 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Rentokil Initial's valuation include:
Price Book 2.7796 | Enterprise Value 69 B | Enterprise Value Ebitda 15.8637 | Price Sales 2.6632 | Forward PE 19.1205 |
Undervalued
Today
Please note that Rentokil Initial's price fluctuation is very steady at this time. Calculation of the real value of Rentokil Initial PLC is based on 3 months time horizon. Increasing Rentokil Initial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Rentokil Initial PLC is useful when determining the fair value of the Rentokil stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Rentokil Initial. Since Rentokil Initial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rentokil Stock. However, Rentokil Initial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 26.27 | Real 30.86 | Target 43.54 | Hype 26.26 | Naive 26.09 |
The real value of Rentokil Stock, also known as its intrinsic value, is the underlying worth of Rentokil Initial PLC Company, which is reflected in its stock price. It is based on Rentokil Initial's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Rentokil Initial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Rentokil Initial's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Rentokil Initial PLC helps investors to forecast how Rentokil stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Rentokil Initial more accurately as focusing exclusively on Rentokil Initial's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Rentokil Initial's intrinsic value based on its ongoing forecasts of Rentokil Initial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rentokil Initial's closest peers. When choosing an evaluation method for Rentokil Initial PLC, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Rentokil Initial Investments |
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Rentokil Valuation Trend
Knowing Rentokil Initial's actual value is paramount for traders to make sound investment determinations. Rentokil Initial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Rentokil Initial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Rentokil Initial's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Rentokil Market Cap
Rentokil Initial PLC is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 25.08 Billion. Rentokil Initial totals roughly 13.18 Billion in market capitalization claiming about 53% of equities under Industrials industry.Rentokil Initial Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Rentokil Initial's current stock value. Our valuation model uses many indicators to compare Rentokil Initial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Rentokil Initial competition to find correlations between indicators driving Rentokil Initial's intrinsic value. More Info.Rentokil Initial PLC is rated second in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.07 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Rentokil Initial PLC is roughly 13.93 . As of the 30th of April 2024, Price To Book Ratio is likely to drop to 11.54. Comparative valuation analysis is a catch-all model that can be used if you cannot value Rentokil Initial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Rentokil Initial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Rentokil Initial's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Rentokil Initial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Rentokil Initial and how it compares across the competition.
About Rentokil Initial Valuation
The stock valuation mechanism determines the current worth of Rentokil Initial PLC on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Rentokil Initial PLC. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rentokil Initial PLC based exclusively on its fundamental and basic technical indicators. By analyzing Rentokil Initial's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Rentokil Initial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rentokil Initial. We calculate exposure to Rentokil Initial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Rentokil Initial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.5 B | 1.4 B | |
| Pretax Profit Margin | 0.09 | 0.15 | |
| Operating Profit Margin | 0.14 | 0.17 | |
| Net Profit Margin | 0.07 | 0.11 | |
| Gross Profit Margin | 0.28 | 0.35 |
8 Steps to conduct Rentokil Initial's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Rentokil Initial's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Rentokil Initial's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Rentokil Initial's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Rentokil Initial's revenue streams: Identify Rentokil Initial's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Rentokil Initial's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Rentokil Initial's growth potential: Evaluate Rentokil Initial's management, business model, and growth potential.
- Determine Rentokil Initial's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Rentokil Initial's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Rentokil Initial represents a small ownership stake in the entity. As a stockholder of Rentokil, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Rentokil Initial Dividends Analysis For Valuation
As of the 30th of April 2024, Dividend Payout Ratio is likely to grow to 0.84, while Dividends Paid is likely to drop about 107.7 M. . At this time, Rentokil Initial's Retained Earnings are very stable compared to the past year. As of the 30th of April 2024, Price Earnings Ratio is likely to grow to 155.98, while Earnings Yield is likely to drop 0.01.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 201 M | 107.7 M | |
| Dividend Yield | 0 | 0 | |
| Dividend Payout Ratio | 0.53 | 0.84 | |
| Dividend Paid And Capex Coverage Ratio | (74.10) | (70.39) |
There are various types of dividends Rentokil Initial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Rentokil shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Rentokil Initial PLC directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Rentokil pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Rentokil Initial by the value of the dividends paid out.
Rentokil Initial Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Rentokil Initial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.5 B | |
| Quarterly Earnings Growth Y O Y | 0.557 | |
| Forward Price Earnings | 19.1205 |
Rentokil Initial Current Valuation Indicators
Valuation refers to the process of determining the present value of Rentokil Initial PLC and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Rentokil we look at many different elements of the entity such as Rentokil's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Rentokil Initial's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Rentokil Initial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Rentokil Initial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Rentokil Initial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Rentokil Initial's worth.When determining whether Rentokil Initial PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rentokil Initial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rentokil Initial Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rentokil Initial Plc Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rentokil Initial PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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When running Rentokil Initial's price analysis, check to measure Rentokil Initial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rentokil Initial is operating at the current time. Most of Rentokil Initial's value examination focuses on studying past and present price action to predict the probability of Rentokil Initial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rentokil Initial's price. Additionally, you may evaluate how the addition of Rentokil Initial to your portfolios can decrease your overall portfolio volatility.
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Is Rentokil Initial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rentokil Initial. If investors know Rentokil will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rentokil Initial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.557 | Dividend Share 0.087 | Earnings Share 0.94 | Revenue Per Share 10.68 | Quarterly Revenue Growth 0.262 |
The market value of Rentokil Initial PLC is measured differently than its book value, which is the value of Rentokil that is recorded on the company's balance sheet. Investors also form their own opinion of Rentokil Initial's value that differs from its market value or its book value, called intrinsic value, which is Rentokil Initial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rentokil Initial's market value can be influenced by many factors that don't directly affect Rentokil Initial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rentokil Initial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rentokil Initial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rentokil Initial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.