Specialty Business Services · NASDAQ
Current Price
$173.95
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Cintas Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. It also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.
ROIC (TTM)
23.2%
ROE (TTM)
41.5%
FCF Yield
2.57%
Based on trailing twelve-month data, CTAS shows a free cash flow per share of N/A and a ROIC of 23.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.57% are important context metrics when evaluating CTAS's stock valuation relative to peers.
The intrinsic value of CTAS depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CTAS is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $173.95. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Cintas Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Specialty Business Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CTAS's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Cintas Corporation, this means projecting how much free cash flow the Specialty Business Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. CTAS's ROIC of 23.2% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CTAS, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
