Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 7 Sept 2026
RBA· Industrials
RB Global
RB Global's valuation at a P/E of 42.1 is too high given its 6.3% ROIC and modest moat in industrial services.
Buffett fit
Weak fit
Owner
32
Durability
66
Management
69
Price
8
Score updated 29 Oct 2026 · analysis from 7 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned RB Global entirely, we'd focus on improving returns on invested capital, currently at 6.3%, which is below the sector's top quintile.
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RB Global's durability is supported by a diversified revenue stream across multiple industries, with a 5-year EPS CAGR of 10.93%.
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Management has not engaged in , with a buyback yield of 0.0%, and the share count has increased at a CAGR of 13.86%, indicating dilution.
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The current valuation metrics, such as a of 42.1 and an EV/ of 27.2, are high, offering little .
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 45.3% is top-quintile in the sector.
- 2 of 18.7% exceeds sector p80 of 17.8%.
- 3Strong conversion with FCF/Net Income at 1.68.
- 4Revenue CAGR of 34.74% over 5 years indicates growth potential.
Concerns
5- 1 of 6.3% is below sector top-quintile of 13.6%.
- 2 ratio of 42.1 suggests high valuation risk.
- 3Net debt/EBITDA of 2.56 exceeds comfortable levels.
- 4Interest coverage ratio of 4.7 is below the 5x threshold.
Price history
$84.41+23.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
RB Global operates an omnichannel marketplace for commercial assets and vehicles, leveraging brands like Ritchie Bros. and IAA for auctions and digital transactions. With a revenue of $4.67B and a net income of $435.9M, it serves diverse industries including automotive and construction. The business generates cash with an of $731.79M, indicating strong cash conversion relative to net income.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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