Rentokil Initial Fair Value
RT
The fair market value of RTO.L stock is 578.78 GBX. Relative to the market price of 406.5 GBX Rentokil Initial is undervalued by 42.4%
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
Rentokil Initial Valuation
Current RTO.L share ticker price is 406.5 GBX.
The fair value level of 578.78 GBX can be considered as an effective entry point for long-term investors to start investing in RTO.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 42% lower its fair value
Current price is 13% lower its minimum value
Current price is 102% lower its maximum value
Market price:
RTO.L stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Rentokil Initial 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
52.93
2
Median P/E over 5 years
37.26
3
Minimum P/E over 5 years
29.52
4
Earning per share (last 12 months)
15.53 GBP
Maximum value
1
x
4
=
822.19 GBX
Fair value
2
x
4
=
578.78 GBX
Minimum value
3
x
4
=
458.52 GBX
Rentokil Initial PLC price metrics
-1.52
Annual return (geometric mean)
33.83
Risk (standard deviation) of returns
β
0.7
Beta (volatility compared to market)