Cintas Corporation (CTAS) Stock Valuation — PE Analysis
Specialty Business Services · NASDAQ
Current Price
$176.28
PE Ratio (TTM)
36.5x
Intrinsic Value
$214.2
+17.7% margin of safety
COMPETITIVE MOAT
↑Recurring Revenue Model
Cintas' subscription-based model for uniforms and facility services creates predictable, recurring revenue. This fosters strong customer loyalty and high switching costs.
↑Operational Efficiency & Scale
Extensive route density and centralized processing allow Cintas to operate with significant economies of scale. This efficiency is difficult for smaller competitors to replicate.
↑Brand Reputation & Trust
Cintas is a trusted brand for essential business services, evidenced by its consistent inclusion on employer recognition lists. This reputation attracts and retains both customers and talent.
INVESTMENT RISKS
↓Economic Sensitivity
Demand for Cintas' services is tied to overall business activity. A significant economic downturn could reduce customer spending and impact revenue growth.
↓Labor Costs & Availability
The company relies on a large workforce. Rising labor costs or difficulties in attracting and retaining employees could pressure margins.
↓Intense Competition
While Cintas has scale, the uniform and facility services market is fragmented. New entrants or aggressive pricing from rivals could challenge market share.
Base case
CTAS base case PE valuation
A base case PE valuation for CTAS estimates a fair value of about $214.2 per share, against a current price of $176.28. The model assumes 11.3% annual earnings growth, a 37x target PE multiple, and a 10% discount rate.
Intrinsic Value
$214.2
Margin of safety
+17.7%
Expected annual return
+4.0%
Base case assumptions: 11.3% annual earnings growth, 37x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CTAS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Cintas Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
36.5x
PEG Ratio
3.82
Earnings Yield
2.74%
ROE (TTM)
41.5%
Revenue/Share (TTM)
$27.46
Dividend Yield
1.02%
Debt/Equity
0.61x
Frequently Asked Questions
What is the PE ratio of CTAS?
The trailing twelve-month PE ratio of CTAS reflects how much investors pay per dollar of Cintas Corporation's earnings. This metric is most useful when compared to Specialty Business Services peers and the company's own historical range.
Is CTAS overvalued based on PE ratio?
CTAS's PE of 36.5x combined with a PEG ratio of 3.82 provides a growth-adjusted perspective. A PEG above 2.0 suggests CTAS may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Specialty Business Services, a DCF analysis may be more appropriate.
How do I value CTAS stock using PE ratio?
To value Cintas Corporation using PE: (1) Compare the current PE (36.5x) against the Specialty Business Services median to assess relative pricing, (2) check the PEG ratio (3.82) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CTAS?
CTAS's PEG ratio is 3.82, calculated by dividing the PE ratio (36.5x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CTAS stock valuation?
PE ratio gives a quick relative read — how CTAS is priced versus Specialty Business Services peers. DCF provides an absolute value based on projected free cash flows. For CTAS, with a strong ROE of 41.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CTAS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value CTAS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.