Rollins Inc (ROL) is overvalued and Service Corp International (SCI) is overvalued.
Both trade above our estimate of their intrinsic value. SCI is the closer of the two: -24%, against -46% for ROL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $22.51; the price of $32.86 is 46% above that value, and 77% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 8.0% (average of 3 methods) values the shares at $63.03; the price of $78.11 is 24% above that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 3 of 12 signals
| Metric | ROL | SCI |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $32.86 | $78.11 |
| Intrinsic value | $22.51 | $63.03 |
| Margin of safety | -46% | -24% |
| Leak Score | 59/100 (3/12) | 30/100 (3/12) |
| Market cap | $15.8B | $10.6B |
| Revenue growth, 5 years | 11.7% | 4.2% |
| Operating margin | 18.9% | 22.4% |
| Net margin | 13.6% | 12.3% |
| Return on equity | 37.0% | 34.7% |
| Debt to equity | 0.78 | 3.45 |
| P/E | 29.8x | 20.4x |
| Forward P/E | 25.6x | 17.0x |
| P/B | 11.1x | 6.9x |
| Dividend yield | 2.3% | 1.8% |