Cintas Corporation (CTAS) Intrinsic Value & DCF Valuation
Specialty Business Services · NASDAQ
Current Price
$201.50
Intrinsic Value
$172.58
-16.8% margin of safety
What Is Cintas Corporation's Intrinsic Value?
As of 2026-09-11, the base-case DCF model estimates the intrinsic value of Cintas Corporation (CTAS) at $172.58 per share, compared with a market price of $201.5, a margin of safety of -16.8%. The base case assumes 11.1% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $144.87 to $203.98. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Cintas Corporation (CTAS) Undervalued?
At the current price of $201.5, CTAS trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Scale and Route Density
Cintas' vast network of service routes and distribution centers creates significant operational efficiencies. This scale makes it difficult for smaller competitors to match their cost structure and service reach.
↑Customer Switching Costs
Businesses rely on Cintas for essential services like uniforms, facility services, and safety products. The disruption and cost of switching providers create high switching costs for their clients.
↑Brand Reputation and Trust
Cintas has built a strong reputation for reliability and quality over decades. This trust is a significant intangible asset, making it the preferred choice for many businesses seeking consistent service.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic recession could lead businesses to cut back on non-essential services, impacting Cintas' revenue and profitability. This is a cyclical risk inherent in their customer base.
↓Labor and Supply Chain Costs
Rising labor wages and increased costs for raw materials or transportation can squeeze Cintas' profit margins. Managing these operational expenses is crucial for sustained profitability.
↓Customer Concentration Risk
While Cintas serves many clients, a significant portion of revenue could be tied to a few large contracts. The loss of a major customer would have a material impact on financial performance.
Base case
CTAS base case valuation
Intrinsic Value
$172.58
Margin of safety
-16.8%
Expected annual return
-3.1%
Base case assumptions: 11.1% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-09-11.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CTAS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Cintas Corporation respond.
Open DCF Calculator for CTASCompany Overview
Cintas Corporation specializes in supplying professional uniforms and a range of essential business services primarily across the United States, Canada, and Latin America. The company's operations are divided into three main divisions: Uniform Rental and Facility Services, First Aid and Safety Services, and an 'All Other' segment. Within its Uniform Rental and Facility Services division, Cintas offers rental and maintenance for various workwear, including flame-resistant apparel, alongside floor mats, mops, and industrial towels. This segment also manages restroom sanitation solutions, providing both cleaning services and supplies, and directly sells new uniforms. Additionally, its First Aid and Safety Services segment delivers comprehensive first aid programs, safety solutions, and fire suppression products and services. Cintas reaches its diverse clientele, ranging from small service and manufacturing businesses to large corporate entities, through an extensive distribution network, dedicated local delivery routes, and direct representatives. Established in 1968, Cintas Corporation maintains its headquarters in Cincinnati, Ohio.
Financial Metrics — CTAS Stock Valuation Data
Revenue/Share (TTM)
$28.15
FCF/Share (TTM)
$4.70
ROIC (TTM)
23.4%
ROE (TTM)
41.8%
P/FCF
42.9x
EV/EBITDA
27.8x
FCF Yield
2.33%
Debt/Equity
0.53x
On a trailing twelve-month basis, CTAS generates free cash flow per share of $4.70 alongside a ROIC of 23.4%, both central inputs for a DCF valuation. Its P/FCF ratio of 42.9x and FCF yield of 2.33% then frame how CTAS is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of CTAS?
Cintas Corporation currently generates $4.70 in free cash flow per share. At the current price of $201.50, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is CTAS undervalued?
CTAS trades at a P/FCF ratio of 42.9x with a free cash flow yield of 2.33%. A high P/FCF means investors are paying more per dollar of free cash flow, which usually reflects expectations of future growth. However, whether CTAS is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value CTAS stock using DCF?
To perform a DCF valuation on Cintas Corporation: (1) Start with the trailing free cash flow per share ($4.70) 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 — with a debt-to-equity of 0.53x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to CTAS?
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 company will produce over the next 5-10 years, shaped by Specialty Business Services trends, then discounting those amounts to today's dollars. CTAS's ROIC of 23.4% reflects how efficiently the company converts invested capital into profit.
How does WACC affect CTAS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CTAS, with a debt-to-equity ratio of 0.53x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 27.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See CTAS PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Industrials valuationsDCF and P/E value CTAS with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.