Reckitt Benckiser (RKT.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
Reckitt Benckiser trades at £50.92, which is 18% above the £41.56 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 77 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Reckitt Benckiser
Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom and internationally. The company offers germ protection under Dettol name; intimate wellness under Durex and KY brand names; over the counter under the Biofreeze, Gaviscon, Mucinex, Nurofen, Delsym, Cepacol, and Strepsils names. It also provides personal care products under Clearasil and Veet brand names; vitamins, minerals, and supplements under MegaRed, Airborne, Digestive-Advantage, Movefree, and neuriva names; stain removal under Vanish brand name; and disinfectant products under the Finish, Harpic, and Lysol brands. In addition, the company offers nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. Reckitt Benckiser Group plc was founded in 1819 and is headquartered in Slough, the United Kingdom.
RKT.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Reckitt Benckiser (RKT.L) undervalued?
Against our discounted cash flow estimate of £41.56, RKT.L at £50.92 is 18% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is RKT.L's P/E ratio?
RKT.L trades at 10.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RKT.L, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.