Reckitt Benckiser Fair Value
RK
The fair market value of RKT.L stock is 4224.28 GBX. Relative to the market price of 4789 GBX Reckitt Benckiser is overvalued by 11.8%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Reckitt Benckiser Valuation
Current RKT.L share ticker price is 4789 GBX.
The fair value level of 4224.28 GBX can be considered as an effective entry point for long-term investors to start investing in RKT.L stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 12% higher its fair value
Current price is 26% higher its minimum value
Current price is 47% lower its maximum value
Market price:
RKT.L stock is overvalued
It means the current price may concern as a Risky Entry Point
Reckitt Benckiser Group PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
32
2
Median P/E over 5 years
19.22
3
Minimum P/E over 5 years
16.1
4
Earning per share (last 12 months)
219.82 GBP
Maximum value
1
x
4
=
7 033.23 GBX
Fair value
2
x
4
=
4 224.28 GBX
Minimum value
3
x
4
=
3 539.1 GBX
Reckitt Benckiser Group PLC price metrics
-3.97
Annual return (geometric mean)
24.24
Risk (standard deviation) of returns
β
0.64
Beta (volatility compared to market)