Rollins, Inc. (ROL) DCF Valuation
TGM's two-stage DCF values Rollins, Inc. (ROL) between $20.38 and $39.77 depending on assumptions, with a base case of $27.94. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.8%) reflects its beta.
What would today's price require?
$42.80 is justified only if free cash flow grows about +19.6% a year (fading to 2.5% long-run) at a 7.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 6.5%/yr | 8.8% | $20.38 |
| Base case | 9.5%/yr | 7.8% | $27.94 |
| Optimistic | 12.5%/yr | 6.8% | $39.77 |
| Analyst DCF (FMP) | independent reference — different model | $48.04 | |
Current Price
$42.80
Market-Implied Growth
+19.6%/yr
vs +7.2% 5Y actual
Model Scenario Range
$20.38 – $39.77
model output — not a price target
ROL DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for ROL (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $538.0M · 0.48B shares · net debt $509.8M
Estimated Fair Value
$36.40
-14.9% vs $42.80
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 9.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $42.80; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.8% | $49.70 | $54.80 | $61.45 | $70.47 | $83.42 |
| 6.8% | $39.26 | $42.27 | $45.98 | $50.67 | $56.78 |
| 7.8% | $32.18 | $34.11 | $36.40 | $39.17 | $42.58 |
| 8.8% | $27.08 | $28.39 | $29.90 | $31.68 | $33.78 |
| 9.8% | $23.24 | $24.17 | $25.21 | $26.42 | $27.81 |
About Rollins, Inc.
Rollins, Inc. operates a network of subsidiaries that specialize in delivering pest and wildlife management solutions to a diverse clientele, encompassing both homeowners and commercial enterprises, throughout the United States and globally. For residential properties, the company offers comprehensive pest control, safeguarding homes from prevalent invaders such as rodents, insects, and other nuisance animals. Furthermore, it devises tailored pest management strategies for various business sectors, including healthcare, foodservice, and logistics. Beyond standard pest solutions, Rollins, Inc. also provides a range of termite defense options, from conventional treatments to baiting systems, alongside other complementary services. The firm serves its customers directly through its own operations as well as through its extensive franchisee network. Established in 1948, Rollins, Inc. maintains its headquarters in Atlanta, Georgia.
- Sector
- Consumer Cyclical
- Industry
- Personal Products & Services
- CEO
- Jerry E. Gahlhoff Jr.