RTO (Rentokil Initial) Intrinsic Value: Projected FCF: $20.97 (As of Sep. 02, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

RTO Rentokil Initial PLC RTO
82 GF Score
Price $24.13
GF Value $30.30
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is Rentokil Initial Intrinsic Value: Projected FCF?

Rentokil Initial RTO -0.70% 82 Intrinsic Value: Projected FCF is $20.97 as of Sep. 02, 2026. GuruFocus rates RTO with a GF Score™ of 82/100 and a GF Value™ of $30.30 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 686 Business Services companies, Rentokil Initial ranks worse than 61.22% on this metric.

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2026-09-02), Rentokil Initial's Intrinsic Value: Projected FCF is $20.97. The stock price of Rentokil Initial is $24.13. Therefore, Rentokil Initial's Price-to-Intrinsic-Value-Projected-FCF of today is 1.2.

The historical rank and industry rank for Rentokil Initial's Intrinsic Value: Projected FCF or its related term are showing as below:

RTO' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.12   Med: 2.82   Max: 3.47
Current: 1.15

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Rentokil Initial was 3.47. The lowest was 1.12. And the median was 2.82.

RTO's Price-to-Projected-FCF is ranked worse than
61.22% of 686 companies
in the Business Services industry
Industry Median: 0.875 vs RTO: 1.15

Rentokil Initial  (NYSE:RTO) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Rentokil Initial's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=24.13/19.985783007996
=1.21

* 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 Intrinsic Value: Projected FCF Related Terms


Rentokil Initial Intrinsic Value: Projected FCF Historical Data

* Premium members only.

The historical data trend for Rentokil Initial's Intrinsic Value: Projected FCF 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 Intrinsic Value: Projected FCF Chart

Rentokil Initial Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.71 19.77 19.15 22.62 20.28

Rentokil Initial Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 22.62 0.00 20.28 0.00

RTO vs CTAS, CPRT, GPN: Intrinsic Value: Projected FCF Comparison

For the Specialty Business Services subindustry, Rentokil Initial's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 Price-to-Projected-FCF vs Business Services Industry

For the Business Services industry and Industrials sector, Rentokil Initial's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Rentokil Initial's Price-to-Projected-FCF falls into.


RTO
82GF Score
Rentokil Initial PLC RTO
Intrinsic Value: Projected FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rentokil Initial Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Rentokil Initial's Free Cash Flow(6 year avg) = $558.75.

Rentokil Initial's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec25)*0.8)/Shares Outstanding (Diluted Average)
=(10.265723347005*558.75185714286+5496*0.8)/507.000
=19.99

* 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.

What does a Intrinsic Value: Projected FCF of $20.97 mean?
Rentokil Initial (RTO) has a Intrinsic Value: Projected FCF of $20.97 as of Sep. 02, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Rentokil Initial and its competitors. According to the industry distribution chart, Rentokil Initial ranks #420 out of 686 companies in the Business Services industry, placing it in the top 61.2%.
Is Rentokil Initial's Intrinsic Value: Projected FCF too high?
Rentokil Initial's current Intrinsic Value: Projected FCF is $20.97. The Business Services industry median Intrinsic Value: Projected FCF is 0.88. Rentokil Initial's value of $20.97 is 2296.6% above this industry median. Based on the distribution chart, Rentokil Initial ranks #420 out of 686 companies in the Business Services industry, which is below the industry midpoint. Overall, Rentokil Initial has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rentokil Initial's Intrinsic Value: Projected FCF compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Rentokil Initial ranks #420 out of 686 companies for Intrinsic Value: Projected FCF. This places Rentokil Initial in the lower half of its industry. The industry median Intrinsic Value: Projected FCF is 0.88. Rentokil Initial's value of $20.97 is 2296.6% 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 Intrinsic Value: Projected FCF for a Business Services company?
The median Intrinsic Value: Projected FCF among Business Services companies is 0.88, based on 686 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rentokil Initial's current Intrinsic Value: Projected FCF of $20.97 is 2296.6% 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Rentokil Initial and its competitors. For the Business Services industry, the median Intrinsic Value: Projected FCF is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rentokil Initial's current Intrinsic Value: Projected FCF is $20.97. 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 Modestly Undervalued. The stock's GF Value™ is $30.30, compared to a current price of $24.13 — trading 20.4% below its estimated fair value. The current Intrinsic Value: Projected FCF is $20.97 and 2296.6% above the Business Services industry median of 0.88. Rentokil Initial's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Rentokil Initial (RTO), the current Intrinsic Value: Projected FCF is $20.97 as of Sep. 02, 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 undervalued. The current stock price of $24.13 is trading 20.4% below its estimated GF Value™ of $30.30. GuruFocus considers Rentokil Initial to be Modestly Undervalued.

Key valuation signals for RTO:

  • Intrinsic Value: Projected FCF: $20.97
  • GF Value™: $30.30 vs. price of $24.13 (20.4% below fair value)
  • GF Score™: 82/100 with 5 warning signs
  • Industry Position: 2296.6% above the Business Services median (#420 of 686)

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 Business Description

Address Manor Royal, Compass House, Crawley, West Sussex, GBR, RH10 9PY
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

Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$24.13
Price
$30.30
GF Value