AACCE Investments
ScreenerStocksIndicesPicksETFsBlogPricing

© 2026 ACCE Investments. All rights reserved.

ACCE Investments - Institutional-grade stock research for retail investors | BetaList
IndicesStocksETFsScreenerBlogGlossaryCompareMarket dataAdvisors
TermsPrivacyCookiesDisclaimerLegal noticeProfessional termsAboutContact
RTO
ACCE-researched

Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) (RTO) fair value

Industrials · Specialty Business Services · NYSE · United States
$22.77-0.48%
Market cap $11.5BNext earnings 2026-07-30Updated Oct 20, 2026
Our verdict
Trades 7% above our fair value
Price
$22.77
Model fair valueConfidence: good
$21.23
Model range
$10.85 to $32.71
Fair value $21.23
Price $22.77
4 models fit Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionRentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) (RTO)
Fair value (4 models)
$21.23
ACCE price target
$24.50
Rating
Fairly valued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $21.98 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $22.50 since 27 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $22.77 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Full methodology
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
7.2% above
-6.7% to fair value
ACCE score
43
out of 100
Analysts
100% buy
3 covering
P/E
33.0x
forward 15.5x
1-year return
-23.3%
Dividend yield
2.78%

Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) in four questions

Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
OverviewAsk ACCEValuationQualityAnalystsSmart MoneyCompareNews and Record

Overview

ACCE thesis

Rentokil Initial sells pest control, hygiene and workplace-hygiene services, plus Terminix termite and pest treatment in North America, on recurring contracts that renew with little friction. Its scale in fragmented local markets and its route-density economics are the moat: each technician route serves more customers at lower marginal cost, which lifts returns as the network fills in. Revenue growth of 6.7% and a 12.8% operating margin are the backdrop, but the case rests on the spread between a 31.8 trailing P/E and a 13.9 forward P/E, which implies earnings are expected to rebound sharply from a depressed base. The return on equity of 6.0% is the weak point, and it is the main thing to test against the rebound before any deeper work.

AI-assisted·How I use AIWritten Oct 14, 2026
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
  • high
    ACCE score collapse
    Score fell 10 points in 90 days (55→45). Momentum (M:17) is severely depressed, signalling deteriorating near-term fundamentals or sentiment.
  • high
    Earnings growth stalling
    YoY earnings growth of 4.2% trails revenue growth of 6.7%, indicating margin pressure or operational headwinds. QoQ revenue declined 4.5%.
  • moderate
    Valuation disconnect
    Current P/E of 32.1 sits well above forward P/E of 13.3, implying market expects material earnings decline.
  • moderate
    Leverage elevated
    Debt/Equity ratio of 1.11 is material for a services business. Combined with earnings deceleration, debt serviceability warrants monitoring.

AI research notes

AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
  • Free cash flow yield of 10.3% on $1.1B annual generation provides a substantial cash return cushion to service debt and reward shareholders.
Why it could disappoint
  • Trailing P/E of 32.1x versus forward P/E of 13.3x implies the market is pricing in a sharp earnings recovery that may not arrive.
  • ROE of 6.0% and ROIC of 3.5% are weak returns on capital, especially given debt-to-equity of 1.11 after the Terminix acquisition.
  • Year-over-year revenue growth of 6.7% has slowed sharply from the 11.7% five-year average, signaling momentum loss in the core business.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.

Walk me through this stock

Plain-English pros, cons, and what to watch. Pro feature.

PRO

Ask ACCE

Valuation

INVESTOR
Where RTO's valuation models land
Price
$22.77
Model fair value
$21.23
Model range
$10.85 to $32.71
Fair value $21.23
Price $22.77
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
Create a free account: 5 full stock pages a month, no card.

See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.

Quality

INVESTOR
Quality and conviction INVESTOR FEATURE

The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.

  • +A plain reason under every score
  • +Conviction breakdown and growth / value / quality / momentum scores
  • +Score history: how each score moved over time

Analysts

Wall Street consensus

Bullish100% buy · 3 covering analysts
● Strong buy 2● Buy 1● Hold 0● Sell 0● Strong sell 0
Analyst intelligence INVESTOR FEATURE

The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.

  • +Price-target low / average / high vs the current price, with implied upside
  • +Forward revenue and EPS consensus by fiscal year
  • +ACCE fair-value models lined up against the Street

Smart Money

PRO

In one line

Trades are only made public after a delay. We show the delay so you know how old the news is.

Company insiders
No trades filed
Last 90 days
Congress
No trades filed
Last 180 days
Average delay
No trades filed
From trade to public filing
Do politicians beat the market? Our backtest →
Smart money tracking PRO FEATURE

Follow the informed money: 13F position changes, insider and Congress trades, and 13D activist filings.

  • +Quarter-over-quarter institutional position changes
  • +Every insider and Congress trade, with how late it was disclosed
  • +Active 13D activist filings and top holders

Compare

Where it sits vs peers

News and Record

Press releases mentioning this company

Recent performance

1 week
+8.0%
1 month
+6.4%
3 months
-19.7%
6 months
-33.2%
YTD
-22.7%
1 year
-23.3%

SEC filings

Recommendation history, last 12 months

DateTypeNewPreviousPrice
20 Oct 2026, 16:04 CESTFair value$21.23$21.98$21.19
20 Oct 2026, 16:04 CESTRatingFairly valuedfirst publication$21.19
18 Oct 2026, 01:52 CESTACCE price target$24.50$22.50$21.09
16 Oct 2026, 00:00 CESTFair value$21.98$22.89$20.24
27 Sept 2026, 00:00 CESTACCE price target$22.50first publication$20.64
15 Sept 2026, 00:00 CESTFair value$22.89$23.24$22.37
5 Sept 2026, 00:00 CESTFair value$23.24$23.65$24.13
31 Aug 2026, 00:00 CESTFair value$23.65$35.04$23.53
22 Aug 2026, 00:00 CESTFair value$35.04$28.86$23.41
19 Aug 2026, 00:00 CESTFair value$28.86$26.61$23.62

This analysis is not personalised investment advice and does not take your situation, objectives or risk tolerance into account. ACCE Investments is not an authorised investment firm.

Investing in shares carries a risk of losing capital. The value of an investment can go down as well as up.

Valuation horizon: 12 months from the publication date.

Conflicts of interest. ACCE Investments is operated by Adrien Chantreuil, who may hold personal positions in the securities analysed. Positions are declared on each security. ACCE receives no payment from the companies analysed or from any intermediary for this analysis.

Get the full RTO page, free

Every model, the scenarios, fair value history, AI notes and the four questions. 5 full stock pages every month on the free plan, no card.

Free accounts get 5 full stock pages a month, including the full page.

Snapshot

Growth40Value67Quality46Momentum17Total43
Valuation
Trailing P/E
33.0x
Forward P/E
15.5x
PEG
7.86
P/B
1.95x
EV / Revenue
2.0x
Book value/sh
$10.92
Enterprise value
$14.5B
Profitability
ROE
6.0%
FCF yield
6.72%
ROIC
3.3%
Health and risk
Debt / equity
1.12
Dividend yield
2.78%
Beta
0.45

Price

-22.3% · 1Y

Ask anything about RTO

Answered from Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares) fundamentals + recent valuations. Every number shows its source and date.

This stock Peer Peer median weaker → stronger
P/Ebetter than 50% of peers
low 18.5x33.0xhigh 37.7x
ROEbetter than 17% of peers
low 6%6%high 39%
Div yieldbetter than 83% of peers
low 0.7%2.8%high 4.8%

Peers

Prices Oct 23, 2026
CompanyPriceFair valuevs fair valueP/EROEQualityScore
RTO Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares)$22.77$217% above33.0x6.0%4643
RTO.L Rentokil Initial plc£3.39£334% above37.7x6.0%4643
ITRK.L Intertek Group plc£59.25£3856% above28.8x29.9%7262
ARMK Aramark Common Stock$52.56$25108% above36.8x11.7%3463
SW.PA Sodexo S.A.€59.95€583% above18.5x11.9%3550
ULS UL Solutions Inc. Class A Common Stock$73.44$35108% above29.9x38.7%8555
RBA RB Global Inc. Common Stock$84.19$7217% above35.3x8.1%6252

Sector report card

Where RTO ranks against its sector peers on each metric.

Computing percentiles…
  • Business Wire•Jun 29, 2026
    The Round of 32 Pest Scouting Report: Which Host Cities Face a "Double Threat"?
40 filings
October 2026
Oct 23
6-KForeign current reportPeriod 2026-10-23
View on SEC →
Oct 22
6-KForeign current reportPeriod 2026-10-22
View on SEC →
Oct 22
6-KForeign current reportPeriod 2026-10-22
View on SEC →
37 more filings + AI summaries on Investor+.INVESTOR