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Rentokil Initial (LSE:RTO) PEG Ratio : 0.62 (As of Apr. 27, 2024)


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What is Rentokil Initial PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Rentokil Initial's PE Ratio without NRI is 17.84. Rentokil Initial's 5-Year EBITDA growth rate is 28.70%. Therefore, Rentokil Initial's PEG Ratio for today is 0.62.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


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

LSE:RTO' s PEG Ratio Range Over the Past 10 Years
Min: 0.6   Med: 7.93   Max: 199.8
Current: 0.62


During the past 13 years, Rentokil Initial's highest PEG Ratio was 199.80. The lowest was 0.60. And the median was 7.93.


LSE:RTO's PEG Ratio is ranked better than
76.39% of 432 companies
in the Business Services industry
Industry Median: 1.315 vs LSE:RTO: 0.62

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Rentokil Initial PEG Ratio Historical Data

The historical data trend for Rentokil Initial's PEG 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 PEG Ratio Chart

Rentokil Initial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 18.40 8.65 3.03 0.66

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
PEG 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 8.65 - 3.03 - 0.66

Competitive Comparison of Rentokil Initial's PEG Ratio

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

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

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



Rentokil Initial PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Rentokil Initial's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=17.844155844156/28.70
=0.62

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Rentokil Initial  (LSE:RTO) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Rentokil Initial PEG Ratio Related Terms

Thank you for viewing the detailed overview of Rentokil Initial's PEG 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