Reckitt Benckiser Group stock: fair value
3RB.DEThe fair value of Reckitt Benckiser Group under our model is $112.84, the price is 33% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly undervaluedIn our model the price counts as cheap below $86.80 and expensive above $161.20 (uncertainty medium, based on the price swings of the past year).
The two parts of the fair value come to $85.42 (cash-flow model) and $140.27 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is below both.
Calculated with a cost of equity of 8.8%. At 9.8% the fair value would be $105.68, at 7.8% it would be $123.60.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (23.8).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.8%. Discounted at 8.8% (floor: government bond yield 3.8% plus 5 percentage points, since beta 0.8 times the risk premium would give less); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $85.42 per share: free cash flow for the next ten years, each year discounted to today at 8.8%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 8.8%) |
|---|---|---|---|---|
| 2026 | $2.62B | extrapolated at 6.9% | 0.9189 | $2.4B |
| 2027 | $2.77B | extrapolated at 5.9% | 0.8445 | $2.34B |
| 2028 | $2.92B | extrapolated at 5.3% | 0.7760 | $2.26B |
| 2029 | $3.06B | extrapolated at 4.9% | 0.7131 | $2.18B |
| 2030 | $3.2B | extrapolated at 4.6% | 0.6553 | $2.1B |
| 2031 | $3.34B | extrapolated at 4.3% | 0.6022 | $2.01B |
| 2032 | $3.48B | extrapolated at 4.2% | 0.5534 | $1.92B |
| 2033 | $3.62B | extrapolated at 4.1% | 0.5085 | $1.84B |
| 2034 | $3.76B | extrapolated at 4.0% | 0.4673 | $1.76B |
| 2035 | $3.91B | extrapolated at 3.9% | 0.4295 | $1.68B |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $20.5B |
| Terminal value: cash flow 2035 × (1 + 3.8%) / (8.8% − 3.8%) | $81.2B |
| Present value of terminal value (× 0.4295) | $34.87B |
| Equity value (sum plus present value of terminal value) | $55.37B |
| Shares (diluted) | 648.20M |
| Value per share (equity value divided by shares) | $85.42 |
| Earnings per share, last twelve months | $5.90 |
| × 23.8 (industry P/E) | $140.27 |
| Fair value (average of both parts) | $112.84 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = €0.9024, $1 = £0.7544)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Strong, published since 7 Nov 2026 (in the score history since 5 Nov 2026)
- Valuation signal Undervalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.