Rollins, Inc. DCF Stock Analysis. Buy or Sell?

Rollins, Inc. DCF Stock Analysis. Buy or Sell?

Rollins, Inc. DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 9.22%

Earnings growth in the last 10 years (CAGR): 11.86%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 9.46%

Future Assumptions

End of Year FCF growth: 8%

Growth until end of 2026: 7%

Growth until end of 2034: 5%

Perpetual growth: 3%

Net Debt: 0.785B

Outstanding Stock Options Present Value Assumption: $0.076B

Assumptions used for the Black & Scholes model:

  • Stock Price: $63
  • Strike Price: $35.84
  • Time to expiration: 2.18 years
  • Risk Free Rate: 4.13%
  • Volatility: 10%

Restricted Stock Units Present Value Assumption: $1.814B

Stock Valuation based on these assumptions: $33

Last update 02/01/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Rollins, Inc. (ROL) and I don’t plan to add a position in the coming days.