Rentokil InitialRTO -0.33%82 Cyclically Adjusted PB Ratio is 4.20 as of Jul. 07, 2026, which is 76% below its 10-year median of 17.24. GuruFocus rates RTO with a GF Score™ of 82/100 and a GF Value™ of $29.78 (Fairly Valued). The stock has 6 warning signs investors should review. Among 730 Business Services companies, Rentokil Initial ranks worse than 81.64% on this metric.
The historical rank and industry rank for Rentokil Initial's Cyclically Adjusted PB Ratio or its related term are showing as below:
RTO'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.7 Med: 17.24 Max: 88.78
Current: 4.11
During the past 13 years, Rentokil Initial's highest Cyclically Adjusted PB Ratio was 88.78. The lowest was 3.70. And the median was 17.24.
RTO's Cyclically Adjusted PB Ratio is ranked worse than 81.64% of 730
companies
in the Business Services industry
Industry Median: 1.565
vs RTO: 4.11
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Rentokil Initial's adjusted book value per share data of for the fiscal year that ended in Dec25 was $10.921. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $7.11 for the trailing ten years ended in Dec25.
Shiller PE for Stocks: The True Measure of Stock Valuation
Rentokil Initial (NYSE:RTO) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Rentokil Initial Cyclically Adjusted PB Ratio Related Terms
Rentokil Initial Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Rentokil Initial's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rentokil Initial Cyclically Adjusted PB Ratio Chart
RTO vs CTAS, CPRT, ULS: Cyclically Adjusted PB Ratio Comparison
For the Specialty Business Services subindustry, Rentokil Initial's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rentokil Initial Cyclically Adjusted PB Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Rentokil Initial's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Rentokil Initial's Cyclically Adjusted PB Ratio falls into.
Rentokil Initial Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Rentokil Initial's Cyclically Adjusted PB Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 4.20 mean?
Rentokil Initial (RTO) has a Cyclically Adjusted PB Ratio of 4.20 as of Jul. 07, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Rentokil Initial and its competitors. This is 76% below median its historical median of 17.24. Over the past decade, Rentokil Initial's Cyclically Adjusted PB Ratio has ranged from 3.70 to 88.78. According to the industry distribution chart, Rentokil Initial ranks #596 out of 730 companies in the Business Services industry, placing it in the top 81.6%.
Is Rentokil Initial's Cyclically Adjusted PB Ratio too high?
Rentokil Initial's current Cyclically Adjusted PB Ratio of 4.20 is 76% below median its 10-year median of 17.24. Over the past 10 years, this metric has ranged from a low of 3.70 to a high of 88.78. The Business Services industry median Cyclically Adjusted PB Ratio is 1.57. Rentokil Initial's value of 4.20 is 168.4% above this industry median. Based on the distribution chart, Rentokil Initial ranks #596 out of 730 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Rentokil Initial has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rentokil Initial's Cyclically Adjusted PB Ratio compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #596 out of 730 companies for Cyclically Adjusted PB Ratio. This places Rentokil Initial in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.57. Rentokil Initial's value of 4.20 is 168.4% above this benchmark. Historically, Rentokil Initial's own Cyclically Adjusted PB Ratio has ranged from 3.70 to 88.78 over the past decade. While the company's 10-year median is 17.24 vs. the industry median of 1.57, Rentokil Initial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Business Services company?
The median Cyclically Adjusted PB Ratio among Business Services companies is 1.57, based on 730 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rentokil Initial's current Cyclically Adjusted PB Ratio of 4.20 is 168.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Cyclically Adjusted PB Ratio is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Cyclically Adjusted PB Ratio is 4.20, which is 76% below median its own 10-year median of 17.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rentokil Initial stock overvalued right now?
Based on GuruFocus' analysis, Rentokil Initial (RTO) is currently considered Fairly Valued. The stock's GF Value™ is $29.78, compared to a current price of $29.89 — trading 0.4% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 4.20, which is 76% below median its 10-year median of 17.24 and 168.4% above the Business Services industry median of 1.57. Rentokil Initial's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Rentokil Initial (RTO), the current Cyclically Adjusted PB Ratio is 4.20 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rentokil Initial (RTO) Overvalued in 2026?
Based on GuruFocus' analysis, Rentokil Initial stock appears to be overvalued.
The current stock price of $29.89 is trading 0.4% above its estimated GF Value™ of $29.78.
GuruFocus considers Rentokil Initial to be Fairly Valued.
Key valuation signals for RTO:
Cyclically Adjusted PB Ratio: 4.20 (76% below median its 10-year median of 17.24)
GF Value™: $29.78 vs. price of $29.89 (0.4% above fair value)
Industry Position: 168.4% above the Business Services median (#596 of 730)
No single metric tells the full story. See the RTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rentokil Initial is the largest global provider of route-based pest control and commercial hygiene services, operating in over 90 countries, with its largest operations in the United States following the acquisition of Terminix. The group also offers a range of specialist route-based services, including office and commercial space plant care, property care, and workwear rentals. The group serves a diverse client base of global food producers, hotel chains, industrial goods companies, restaurants, and individual residential customers.
82GF Score
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