Latest Ratios: P/E Ratio 31.1x · EV/EBITDA 12.3x · ROE 8.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $14.5B | $14.9B | $12.8B | $14.5B | $12.4B | $15.0B | $13.3B | $11.3B | $8.0B | $8.1B | $5.0B |
| Enterprise Value | $18.2B | $17.8B | $16.0B | $17.6B | $15.6B | $16.2B | $14.5B | $12.4B | $9.1B | $9.0B | $6.2B |
| P/E Ratio → | 31.12 | 42.09 | 42.20 | 38.15 | 51.35 | 57.33 | 71.20 | 40.63 | — | 11.86 | 29.67 |
| P/S Ratio | 2.13 | 2.91 | 2.36 | 2.69 | 3.34 | 5.07 | 4.76 | 4.24 | 3.22 | 3.37 | 2.32 |
| P/B Ratio | 2.71 | 3.66 | 3.03 | 3.54 | 3.03 | 11.85 | 11.73 | 11.31 | 9.57 | 8.70 | 13.95 |
| P/FCF | 19.15 | 26.11 | 25.25 | 27.49 | 29.98 | 36.79 | 34.67 | 35.17 | 36.82 | 39.53 | 28.75 |
| P/OCF | 15.07 | 20.55 | 18.88 | 19.62 | 20.55 | 26.41 | 24.79 | 22.98 | 21.92 | 21.39 | 13.93 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.46 | 2.95 | 3.28 | 4.21 | 5.50 | 5.18 | 4.63 | 3.68 | 3.75 | 2.86 |
| EV / EBITDA | 12.29 | 15.84 | 18.43 | 16.04 | 27.19 | 29.59 | 28.46 | 21.34 | 17.74 | 17.59 | 12.38 |
| EV / EBIT | 19.61 | 25.27 | 23.91 | 25.87 | 31.91 | 42.97 | 47.72 | 31.52 | 32.16 | 28.68 | 24.13 |
| EV / FCF | — | 31.05 | 31.59 | 33.54 | 37.77 | 39.89 | 37.79 | 38.43 | 42.07 | 44.03 | 35.48 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.7% | 13.7% | 13.4% | 82.8% | 26.3% | 24.2% | 23.4% | 21.6% | 79.2% | 80.3% | 82.7% |
| Operating Margin | 13.7% | 13.7% | 10.1% | 11.6% | 8.5% | 11.7% | 10.5% | 9.5% | 11.5% | 13.1% | 11.9% |
| Net Profit Margin | 6.8% | 6.8% | 5.6% | 7.1% | 6.2% | 8.9% | 6.7% | 10.6% | -4.0% | 28.3% | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.4% | 8.4% | 7.4% | 9.3% | 8.7% | 22.0% | 17.4% | 30.9% | -11.1% | 105.5% | 58.5% |
| ROA | 3.3% | 3.3% | 2.8% | 3.3% | 2.9% | 5.3% | 3.8% | 7.7% | -3.2% | 24.2% | 7.1% |
| ROIC | 7.3% | 7.3% | 5.6% | 6.4% | 4.8% | 10.7% | 10.1% | 9.5% | 11.1% | 13.9% | 13.6% |
| ROCE | 8.7% | 8.7% | 6.6% | 7.1% | 5.3% | 11.9% | 11.0% | 11.8% | 13.4% | 14.8% | 16.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.12 | 1.12 | 0.98 | 1.16 | 1.34 | 1.56 | 2.78 | 2.22 | 1.52 | 1.32 | 3.71 |
| Debt / EBITDA | 4.06 | 4.06 | 4.77 | 4.30 | 9.51 | 3.58 | 6.19 | 3.82 | 2.47 | 2.40 | 2.67 |
| Net Debt / Equity | — | 0.69 | 0.76 | 0.78 | 0.79 | 1.00 | 1.06 | 1.05 | 1.36 | 0.99 | 3.26 |
| Net Debt / EBITDA | 2.52 | 2.52 | 3.70 | 2.90 | 5.61 | 2.30 | 2.35 | 1.81 | 2.21 | 1.80 | 2.35 |
| Debt / FCF | — | 4.94 | 6.34 | 6.06 | 7.79 | 3.10 | 3.12 | 3.26 | 5.25 | 4.50 | 6.73 |
| Interest Coverage | 15.75 | 15.75 | 2.86 | 3.31 | 4.12 | 10.21 | 7.35 | 4.67 | 7.95 | 9.07 | 6.68 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.16 | 1.16 | 0.81 | 1.05 | 1.14 | 0.97 | 1.05 | 1.01 | 0.60 | 1.21 | 1.21 |
| Quick Ratio | 1.07 | 1.07 | 0.72 | 0.97 | 1.05 | 0.87 | 1.00 | 0.95 | 0.51 | 1.09 | 1.09 |
| Cash Ratio | 0.70 | 0.70 | 0.36 | 0.60 | 0.76 | 0.48 | 0.79 | 0.66 | 0.11 | 0.44 | 0.25 |
| Asset Turnover | — | 0.48 | 0.52 | 0.48 | 0.31 | 0.68 | 0.50 | 0.63 | 0.80 | 0.78 | 0.85 |
| Inventory Turnover | 19.41 | 19.41 | 20.57 | 4.48 | 11.31 | 16.50 | 16.27 | 19.71 | 4.98 | 5.63 | 4.70 |
| Days Sales Outstanding | — | 61.62 | 61.03 | 59.76 | 81.57 | 65.12 | 66.03 | 59.30 | 60.91 | 56.63 | 53.22 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 1.5% | 1.8% | 1.4% | 1.0% | 0.9% | — | 0.8% | 0.9% | 0.8% | 1.1% |
| Payout Ratio | 64.7% | 64.7% | 74.6% | 52.8% | 52.6% | 52.9% | — | 30.2% | — | 9.4% | 33.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 2.4% | 2.4% | 2.6% | 1.9% | 1.7% | 1.4% | 2.5% | — | 8.4% | 3.4% |
| FCF Yield | 5.2% | 3.8% | 4.0% | 3.6% | 3.3% | 2.7% | 2.9% | 2.8% | 2.7% | 2.5% | 3.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.8% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.0% | 1.5% | 1.8% | 1.4% | 1.8% | 1.0% | 0.0% | 0.8% | 0.9% | 0.8% | 1.1% |
| Shares Outstanding | — | $507M | $506M | $505M | $403M | $373M | $373M | $372M | $368M | $370M | $369M |
Integration and margin execution
Based on current market data, Rentokil trades at a forward P/E of 27.07, which, when compared to its PEG ratio of 4.50, suggests that investors are pricing in significant future growth that is currently not supported by the company's recent negative organic revenue performance.
The valuation premium relative to peers like ABM Industries appears to reflect a conglomerate status that the market is currently discounting due to integration friction. Investors should monitor whether the forward earnings multiple compresses further if the company fails to demonstrate a clear path toward margin expansion in its North American operations.
As reported in recent financial statements, Rentokil's ROIC has trended downward to 3.3% in 2025Q4, a significant decline from the 5.7% levels observed in 2021, indicating that the company's aggressive acquisition strategy is currently failing to generate returns that exceed its cost of capital.
The persistent gap between ROIC and historical peaks suggests that the capital deployed for large-scale acquisitions like Terminix is not yet yielding the expected synergies. This trend warrants further investigation into whether the company's asset base is becoming bloated with goodwill that may eventually require impairment if operational returns do not improve.
According to quarterly filings, Rentokil's cash conversion cycle has shown extreme volatility, swinging from 158 days in 2023Q4 to -9 days in 2025Q4, which suggests that the company's ability to manage its supplier and customer payment terms remains inconsistent following recent structural changes.
The erratic nature of the CCC, particularly the wide swings in days payable outstanding, implies that the company may be using aggressive working capital management to mask underlying operational cash flow pressures. Analysts should view this instability as a potential indicator of friction in the integration of disparate procurement and billing systems.
Based on reported figures, Rentokil maintains a debt-to-EBITDA ratio of 8.04 as of 2025Q4, which, while improved from earlier periods, remains elevated and suggests that the company's capacity to absorb further debt for M&A is increasingly constrained by its current interest coverage of 3.70x.
While the current debt-to-equity ratio of 1.12 appears manageable, the reliance on debt to fund growth in a higher-rate environment poses a risk to future free cash flow. Investors should monitor the interest coverage ratio closely, as any further decline in operating margins could quickly tighten the company's financial flexibility.
The most commonly misapplied metric for Rentokil is the standard operating margin, which, at 13.68%, fails to account for the heavy amortization of intangibles and integration costs that are inherent to the company's aggressive, acquisition-led business model in the fragmented global pest control market.
Analysts often compare this figure directly to pure-play peers like Rollins, which obscures the reality that Rentokil's true earning power is currently masked by non-recurring integration expenses. A more appropriate metric would be an adjusted EBITDA margin that normalizes for acquisition-related noise, providing a clearer view of the underlying profitability of the core route-based service business.
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Quick answers to the most common questions about buying RTO stock.
Rentokil Initial plc's current P/E ratio is 31.1x. The historical average is 39.8x. This places it at the 44th percentile of its historical range.
Rentokil Initial plc's current EV/EBITDA is 12.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.5x.
Rentokil Initial plc's return on equity (ROE) is 8.4%. The historical average is 95.9%.
Based on historical data, Rentokil Initial plc is trading at a P/E of 31.1x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Rentokil Initial plc's current dividend yield is 2.05% with a payout ratio of 64.7%.
Rentokil Initial plc has 13.7% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
Rentokil Initial plc's Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.