Rentokil Initial Plc Stock Market Value
| RTO Stock | USD 25.90 0.28 1.09% |
| Symbol | Rentokil |
Rentokil Initial PLC Price To Book Ratio
Is Environmental & Facilities Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rentokil Initial. If investors know Rentokil will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rentokil Initial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.06 | Dividend Share 0.091 | Earnings Share 0.98 | Revenue Per Share 10.735 | Quarterly Revenue Growth 0.013 |
The market value of Rentokil Initial PLC is measured differently than its book value, which is the value of Rentokil that is recorded on the company's balance sheet. Investors also form their own opinion of Rentokil Initial's value that differs from its market value or its book value, called intrinsic value, which is Rentokil Initial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rentokil Initial's market value can be influenced by many factors that don't directly affect Rentokil Initial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rentokil Initial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rentokil Initial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rentokil Initial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Rentokil Initial 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Rentokil Initial's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Rentokil Initial.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Rentokil Initial on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Rentokil Initial PLC or generate 0.0% return on investment in Rentokil Initial over 30 days. Rentokil Initial is related to or competes with First Advantage, Civeo Corp, Performant Financial, Network 1, Mader Group, BrightView Holdings, and Maximus. Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom... More
Rentokil Initial Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Rentokil Initial's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Rentokil Initial PLC upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.13) | |||
| Maximum Drawdown | 22.43 | |||
| Value At Risk | (2.69) | |||
| Potential Upside | 2.4 |
Rentokil Initial Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Rentokil Initial's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Rentokil Initial's standard deviation. In reality, there are many statistical measures that can use Rentokil Initial historical prices to predict the future Rentokil Initial's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.37) | |||
| Total Risk Alpha | (0.72) | |||
| Treynor Ratio | (0.55) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Rentokil Initial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Rentokil Initial PLC Backtested Returns
Rentokil Initial PLC maintains Sharpe Ratio (i.e., Efficiency) of -0.11, which implies the firm had a -0.11% return per unit of risk over the last 3 months. Rentokil Initial PLC exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Rentokil Initial's Risk Adjusted Performance of (0.07), coefficient of variation of (1,045), and Variance of 9.76 to confirm the risk estimate we provide. The company holds a Beta of 0.56, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Rentokil Initial's returns are expected to increase less than the market. However, during the bear market, the loss of holding Rentokil Initial is expected to be smaller as well. At this point, Rentokil Initial PLC has a negative expected return of -0.34%. Please make sure to check Rentokil Initial's treynor ratio, accumulation distribution, as well as the relationship between the Accumulation Distribution and price action indicator , to decide if Rentokil Initial PLC performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.61 |
Very good reverse predictability
Rentokil Initial PLC has very good reverse predictability. Overlapping area represents the amount of predictability between Rentokil Initial time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Rentokil Initial PLC price movement. The serial correlation of -0.61 indicates that roughly 61.0% of current Rentokil Initial price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.61 | |
| Spearman Rank Test | -0.57 | |
| Residual Average | 0.0 | |
| Price Variance | 0.2 |
Rentokil Initial PLC lagged returns against current returns
Autocorrelation, which is Rentokil Initial stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Rentokil Initial's stock expected returns. We can calculate the autocorrelation of Rentokil Initial returns to help us make a trade decision. For example, suppose you find that Rentokil Initial has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Rentokil Initial regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Rentokil Initial stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Rentokil Initial stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Rentokil Initial stock over time.
Current vs Lagged Prices |
| Timeline |
Rentokil Initial Lagged Returns
When evaluating Rentokil Initial's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Rentokil Initial stock have on its future price. Rentokil Initial autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Rentokil Initial autocorrelation shows the relationship between Rentokil Initial stock current value and its past values and can show if there is a momentum factor associated with investing in Rentokil Initial PLC.
Regressed Prices |
| Timeline |
Pair Trading with Rentokil Initial
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rentokil Initial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rentokil Initial will appreciate offsetting losses from the drop in the long position's value.Moving against Rentokil Stock
The ability to find closely correlated positions to Rentokil Initial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rentokil Initial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rentokil Initial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rentokil Initial PLC to buy it.
The correlation of Rentokil Initial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rentokil Initial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rentokil Initial PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rentokil Initial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Rentokil Initial Correlation, Rentokil Initial Volatility and Rentokil Initial Alpha and Beta module to complement your research on Rentokil Initial. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Rentokil Initial technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.