Forecast

Financial forecast

Project revenue, EBITDA, net income and free cash flow for the next 5 or 10 years. Growth starts at the same rate the valuation uses and fades to the long-run rate, with margins held at today's level. Bear and bull cases move growth by the company's own revenue volatility. It is a model of what the assumptions imply, not a prediction.

Reckitt Benckiser Group plc (RKT.L)

Price updated 06 Nov 2026 14:48; Fiscal year 2025; Annual financials downloaded 06 Nov 2026 15:58.

Starts from Fiscal year 2025 financials in GBP and a share price of GBP 55.28. Growth begins at 2.8% a year (the valuation's blended assumption) and fades to 2.4% by year 10. Margins held at EBITDA 27.6%, net 22.4%, free cash flow 12.4% of revenue. Bear and bull move starting growth by 5.6 points and long-run growth by 1 point.

Margins drift toward their 5-year average over 5 years (net), because today's margin is far above the company's own average.
Year 1 uses analyst consensus revenue growth (2.1%); year 2 is halfway back to the model's own path.
GBP 31.37Model fair value (Free-cash-flow DCF); range GBP 20.36 to GBP 51.82
-43%Fair value vs today's price
MediumModel confidence
50%Share of the gap to fair value the price closes by year 5

Confidence: Earnings-based DCF is somewhat apart; annual data only; profit and cash flow steady for 3 years.

0.4%/yrModel-implied annual total return over 10 years, base case (price plus dividends). Raw model level; the screener shows a calibrated ranking instead
GBP 18.18BRevenue in year 10 (base)
GBP 2.87BNet income in year 10 (base)
GBP 2.25BFree cash flow in year 10 (base)
GBP 1.93Dividend per share in year 10 (base)
GBP 39.03Implied share price in year 10 (base), today GBP 55.28
6.2%Year-10 free cash flow per share vs today's price

Free cash flow over time

GBP 0 GBP 773.08M GBP 1.55B GBP 2.32B GBP 3.09B FY2020 FY2022 FY2024 Fiscal year 2025 +1 +3 +5 +7 +9 +10
Solid: reported Dashed: base projection Shaded: bear to bull range
Free cash flow in year 10 by scenario
CaseStarting growthYear 10Annual growth
Bear -3.5% GBP 1.62B -0.8%
Base 2.1% GBP 2.25B 2.5%
Bull 7.6% GBP 3.09B 5.8%

Base case by year

YearGrowthRevenueEBITDANet incomeFree cash flowEPSFCF / shareDividend / shareBook / shareImplied price
Fiscal year 2025– GBP 14.21BGBP 3.92BGBP 3.18BGBP 1.76B 4.872.692.1511.8555.28
Year 12.1% GBP 14.50BGBP 4.00BGBP 3.06BGBP 1.80B 4.672.752.0614.4650.79
Year 22.4% GBP 14.85BGBP 4.09BGBP 2.93BGBP 1.84B 4.492.821.9816.9746.54
Year 32.7% GBP 15.26BGBP 4.20BGBP 2.81BGBP 1.89B 4.302.891.8919.3742.49
Year 42.7% GBP 15.66BGBP 4.32BGBP 2.68BGBP 1.94B 4.092.971.8121.6638.47
Year 52.6% GBP 16.07BGBP 4.43BGBP 2.53BGBP 1.99B 3.883.051.7123.8334.51
Year 62.6% GBP 16.49BGBP 4.54BGBP 2.60BGBP 2.04B 3.983.131.7526.0535.40
Year 72.5% GBP 16.91BGBP 4.66BGBP 2.67BGBP 2.10B 4.083.211.8028.3336.30
Year 82.5% GBP 17.33BGBP 4.78BGBP 2.73BGBP 2.15B 4.183.291.8430.6637.20
Year 92.4% GBP 17.75BGBP 4.89BGBP 2.80BGBP 2.20B 4.283.371.8933.0638.11
Year 102.4% GBP 18.18BGBP 5.01BGBP 2.87BGBP 2.25B 4.383.451.9335.5139.03

EPS and free cash flow per share assume today's share count. Dividends assume today's payout ratio and book value grows with retained earnings. The implied share price follows the valuation models and is not a price target; override growth settings do not change the model fair value. Margins stay at today's level except where the notes say they drift toward their average, so it does not model margin expansion, buybacks, acquisitions or recessions. It is for information and education only and is not investment advice. See the methodology for how the growth rate is blended.