The Reckitt Benckiser (LON:RB.) share price: expensive at 6029p?

Reckitt Benckiser (LON:RB.) is a £42,735m market cap consumer goods giant whose portfolio of brands includes Durex, Mucinex, Scholl, Strepsils, Cillit Bang, Clearasil, Dettol, Harpic, Lysol, Mortein, Veet, Air Wick, Calgon, Vanish and Woolite.

For the six months ended 30 June 2019, Reckitt Benckiser Group Plc revenues increased 2% to £6.24bn and net income before extraordinary items increased 13% to £979m, but right now the its share price is on the expensive side from a factor perspective, based on a Value Rank of 33. Let's see why this is.

A closer look at Reckitt Benckiser's Value Rank

We can see by using Reckitt Benckiser’s StockReport that the group has a:

• Rolling price to book value of 2.96,
• Trailing twelve month price to earnings ratio of 17.5
• Trailing twelve month price to free cashflow of 21.5
• Rolling dividend yield of 2.87%, and a
• Trailing twelve-month price to sales ratio of 3.37

This combination of financial traits suggests that Reckitt Benckiser stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Reckitt Benckiser that you can find out about here.