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Rentokil Initial (LSE:RTO) PB Ratio : 2.57 (As of Apr. 25, 2024)


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What is Rentokil Initial PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-25), Rentokil Initial's share price is £4.183. Rentokil Initial's Book Value per Share for the quarter that ended in Dec. 2023 was £1.63. Hence, Rentokil Initial's PB Ratio of today is 2.57.

Good Sign:

Rentokil Initial PLC stock PB Ratio (=2.57) is close to 10-year low of 2.43

The historical rank and industry rank for Rentokil Initial's PB Ratio or its related term are showing as below:

LSE:RTO' s PB Ratio Range Over the Past 10 Years
Min: 2.43   Med: 8.86   Max: 29.05
Current: 2.57

During the past 13 years, Rentokil Initial's highest PB Ratio was 29.05. The lowest was 2.43. And the median was 8.86.

LSE:RTO's PB Ratio is ranked worse than
64% of 1025 companies
in the Business Services industry
Industry Median: 1.76 vs LSE:RTO: 2.57

During the past 12 months, Rentokil Initial's average Book Value Per Share Growth Rate was -0.60% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 38.80% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 32.50% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Rentokil Initial was 109.80% per year. The lowest was -176.30% per year. And the median was 11.30% per year.

Back to Basics: PB Ratio


Rentokil Initial PB Ratio Historical Data

The historical data trend for Rentokil Initial's 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.

* Premium members only.

Rentokil Initial PB Ratio Chart

Rentokil Initial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.36 8.37 8.54 3.10 2.71

Rentokil Initial Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
PB Ratio 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 8.54 6.12 3.10 3.89 2.71

Competitive Comparison of Rentokil Initial's PB Ratio

For the Specialty Business Services subindustry, Rentokil Initial's PB Ratio, along with its competitors' market caps and 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's PB Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Rentokil Initial's PB Ratio distribution charts can be found below:

* The bar in red indicates where Rentokil Initial's PB Ratio falls into.



Rentokil Initial PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Rentokil Initial's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Dec. 2023)
=4.183/1.629
=2.57

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Rentokil Initial  (LSE:RTO) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Rentokil Initial PB Ratio Related Terms

Thank you for viewing the detailed overview of Rentokil Initial's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Rentokil Initial (LSE:RTO) Business Description

Traded in Other Exchanges
Address
Manor Royal, Compass House, Crawley, West Sussex, GBR, RH10 9PY
Rentokil Initial is a leading global provider of route-based pest-control and commercial hygiene services, operating in 83 countries. 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 has a diverse client base that includes global food producers, hotel chains, industrial goods businesses, restaurants, and individual residential customers.

Rentokil Initial (LSE:RTO) Headlines