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ROLRollins, Inc.

Rollins, Inc. (ROL) DCF Valuation

Price is ABOVE the estimated range
$20.38
$39.77
Model scenario range
$42.80
Today's price

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?

Growth the price assumes+19.6%/yr
Actual FCF growth, last 5 years+7.2%/yr

$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.

ScenarioFCF growth (fading to 2.5%)DiscountValue / share
Conservative6.5%/yr8.8%$20.38
Base case9.5%/yr7.8%$27.94
Optimistic12.5%/yr6.8%$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.

9.5%/yr
Historical FCF CAGR: 3Y 11.4% · 5Y 7.2% · 10Y 15.0%
7.8%
2.5%
10yr

Base inputs: FCF $538.0M · 0.48B shares · net debt $509.8M

Estimated Fair Value

$36.40

-14.9% vs $42.80

Current price$42.80
Analyst DCF (FMP)$48.04

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.

Atlanta, GA
20,000 employees
Consumer Cyclical / Personal Products & Services
Sector
Consumer Cyclical
Industry
Personal Products & Services
CEO
Jerry E. Gahlhoff Jr.