Bottom Line:
✅ BUY SIGNAL: ROL trading at deep discount. Market pricing in -5.4% annual earnings decline, creating value opportunity for patient investors.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$51.93
Based on 8.2% avg growth
INTRINSIC VALUE TODAY
$32.24
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
Valuation Analysis: ROL is currently trading at $53.93, which is considered slightly low relative to its 30-day fair value range of $53.30 to $58.97. From a valuation perspective, the stock is trading at a discount (Forward PE: 38.1) compared to its historical average (45.1). Remarkably, the market is currently pricing in an annual earnings decline of 5.4% over the next few years. This pessimistic expectation contrasts with the company's recent 9.9% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ROL is in a downtrend. The price is currently testing key support at $52.32. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $63.66 (+19.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Fair Price Range
$53.30 -
$58.97
Company Quality Score
64/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
BULLISH: Price oversold vs 30-day range
NEUTRAL: Mixed technical signals (45/100)
BULLISH: High volume confirmation
BULLISH: Trading below Wall St target ($63.66)
Fair Price Analysis
30-Day Fair Range
$53.30 -
$58.97
Current vs Fair Value
SLIGHTLY LOW
Support & Resistance Levels
Support Level$52.32
Resistance Level$54.28
Current TrendDowntrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)38.12
Wall Street Target
$63.66
(+19.0%)
Revenue Growth (YoY)9.7%
Earnings Growth (YoY)9.9%
Profit Margin14.0%
Valuation Discount vs History
-5.4% cheaper
PE vs Historical
38.1 vs 45.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):-5.4%
(market-implied from PE analysis)
1-Year Target
$50.60
(-5%)
2-Year Target
$47.87
(-11%)
3-Year Target
$45.28
(-15%)
3-Yr Target (if PE normalizes)
(PE: 38→45)
$53.58
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 38.1, Growth: 12.4%)
$75.96
(+42%)
Base:
(SPY PE: 22.4, Growth: 12.4%)
$44.53
(-17%)
Bear:
(PE: 19.0, Growth: 12.4%)
$37.85
(-29%)
📈Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (49x PE), but valuation improves significantly next year (38x PE) as earnings recover.
Trailing PE: 48.86 | Current EPS (TTM): $1.09
Bull Case
$75.45
(+42%)
Analyst growth 28.8%, PE expands to 53.8
Base Case
$68.59
(+29%)
Market implied 28.8%, PE stable at 48.9
Bear Case
$36.22
(-32%)
Severe decline -20.0%, PE contracts to 41.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 38.1 to 45.1
Stabilization Target:
$63.28
(+18.3%)
PE Expansion Potential:
+18.3%
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Rollins is a global leader in route-based pest control services, with operations primarily in the United States, as well as in North, Central, and South America, Europe, the Middle East, Africa, and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the US, which boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins, owing to the group's ongoing focus on the US and Canadian markets.