Rentokil Initial (NYSE:RTO) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Rentokil Initial Forward PE Ratio Related Terms
Rentokil Initial Forward PE Ratio Historical Data
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The historical data trend for Rentokil Initial's Forward PE 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 Forward PE Ratio Chart
Rentokil Initial Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
16.84
19.61
23.98
22.83
29.59
34.25
31.06
20.41
17.92
44.68
35.71
Rentokil Initial Semi-Annual Data
2015-12
2016-06
2016-12
2017-06
2017-12
2018-06
2018-12
2019-06
2019-12
2020-06
2020-12
2021-06
2021-12
2022-06
2022-12
2023-06
2023-12
2024-06
2024-12
2025-06
2025-12
Forward PE Ratio
16.84
18.08
19.61
23.47
23.98
28.01
22.83
27.86
29.59
34.36
34.25
30.86
31.06
24.88
20.41
26.60
17.92
19.96
44.68
17.43
35.71
RTO vs CTAS, CPRT, ULS: Forward PE Ratio Comparison
For the Specialty Business Services subindustry, Rentokil Initial's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Rentokil Initial's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Rentokil Initial's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Rentokil Initial (RTO) has a Forward PE Ratio of 37.35 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rentokil Initial and its competitors. According to the industry distribution chart, Rentokil Initial ranks #327 out of 416 companies in the Business Services industry, placing it in the top 78.6%.
Is Rentokil Initial's Forward PE Ratio too high?
Rentokil Initial's current Forward PE Ratio is 37.35. The Business Services industry median Forward PE Ratio is 12.61. Rentokil Initial's value of 37.35 is 196.2% above this industry median. Based on the distribution chart, Rentokil Initial ranks #327 out of 416 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 Forward PE Ratio compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #327 out of 416 companies for Forward PE Ratio. This places Rentokil Initial in the lower half of its industry. The industry median Forward PE Ratio is 12.61. Rentokil Initial's value of 37.35 is 196.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Business Services company?
The median Forward PE Ratio among Business Services companies is 12.61, based on 416 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rentokil Initial's current Forward PE Ratio of 37.35 is 196.2% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Forward PE Ratio is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Forward PE Ratio is 37.35. 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 $28.93, compared to a current price of $29.99 — trading 3.7% above its estimated fair value. The current Forward PE Ratio is 37.35 and 196.2% above the Business Services industry median of 12.61. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Rentokil Initial (RTO), the current Forward PE Ratio is 37.35 as of Jul. 06, 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 $29.99 is trading 3.7% above its estimated GF Value™ of $28.93.
GuruFocus considers Rentokil Initial to be Fairly Valued.
Key valuation signals for RTO:
Forward PE Ratio: 37.35
GF Value™: $28.93 vs. price of $29.99 (3.7% above fair value)
Industry Position: 196.2% above the Business Services median (#327 of 416)
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
Get the complete analysis for RTO
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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