Reckitt Benckiser Group plc
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, Nuro…
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.Looks overvalued
Other models: GBP 30.65–73.28 (median 61.94). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price above modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 2.81% growth, 2.4% terminal growth, and 9.2% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2.81%, discount rate 9.20%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 2.8% (sector default 5.3%, own revenue history 1.8%, analyst revenue consensus 2.1%).
5-year outlook: relative outlook of about 4.2% a year (Medium confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 2.1% a year; the growth assumption used is 2.8%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 31.37 (-43.3%)
-
EPS-based Gordon proxy
— GBP 73.28 (+32.6%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
-
DCF (trailing free cash flow)
— GBP 31.37 (-43.3%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
-
FCFF (steady state)
— GBP 30.65 (-44.6%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
-
EV/EBITDA (12x)
— GBP 61.94 (+12.0%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
-
Fade DCF (10-year growth fade)
— GBP 31.34 (-43.3%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
-
EV/Sales (Rule of 40)
— GBP 122.05 (+120.8%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 20.36 | -171.5% |
| Base GBP 31.37 | -76.2% |
| Bull GBP 51.82 | -6.7% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 55.28 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.2%).
Compare: the market implies 13.8% a year, this model assumes 2.8%. The market expects more than this model does, which is why it reads as overvalued.
Sensitivity: base value per share
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 7.2% | 8.2% | 9.2% | 10.2% | 11.2% |
|---|---|---|---|---|---|
| -1.2% | 38.93 | 30.63 | 24.77 | 20.41 | 17.03 |
| 0.8% | 43.59 | 34.42 | 27.95 | 23.13 | 19.41 |
| 2.8% | 48.61 | 38.50 | 31.37 | 26.07 | 21.97 |
| 4.8% | 54.01 | 42.90 | 35.05 | 29.22 | 24.72 |
| 6.8% | 59.83 | 47.62 | 39.01 | 32.61 | 27.67 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 88 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +1.8% a year | 12 / 20 |
| Balance sheet | net debt 1.7x EBITDA | 20 / 20 |
| Margins | EBITDA margin 28% | 20 / 20 |
Peers in Consumer Staples
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| RKT.L (this company) | GBP 55.28 | -76.2% | 11.4 | 4.7 | 3.9% | 88 |
| ORK.OL Orkla ASA | NOK 102.30 | 32.1% | 14.5 | 2.3 | 9.8% | 82 |
| KHC Kraft Heinz | USD 24.46 | 27.8% | – | 0.8 | 6.5% | 36 |
| WN.TO George Weston Limited | CAD 109.72 | 26.2% | 39.8 | 9.1 | 1.2% | 72 |
| CA.PA Carrefour SA | EUR 13.49 | 24.7% | 28.9 | 0.8 | 8.8% | 72 |
| ABF.L Associated British Foods plc | GBP 19.60 | 20.0% | 14.9 | 1.2 | 3.2% | 82 |
| ADM Archer Daniels Midland | USD 70.55 | 16.7% | 13.8 | 1.4 | 3.0% | 64 |
| AXFO.ST Axfood AB | SEK 283.20 | 8.1% | 24.9 | 8.2 | 3.1% | 70 |
| DLTR Dollar Tree | USD 135.65 | 1.9% | 16.1 | 7.6 | – | 72 |
| Peer median | 16.1 | 1.9 | ||||
Dividends
Paid in the last 12 months: GBP 0.05 per share · yield 0.08% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.046 |
| 2025 | 0.021 |
| 2024 | 0.020 |
| 2023 | 0.019 |
| 2022 | 0.018 |
| 2021 | 0.018 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 14,205,000,000 |
|---|---|
| EBITDA | GBP 3,915,000,000 |
| EBIT | GBP 3,416,000,000 |
| Net income | GBP 3,182,000,000 |
| Free cash flow | GBP 1,761,000,000 |
| Capital expenditures | GBP 536,000,000 |
| Debt | GBP 8,430,000,000 |
| Cash | GBP 1,952,000,000 |
| Working capital | GBP -1,015,000,000 |
| Shares outstanding | 653,896,796 |
| Reported dividends per share | GBP 2.1456 |