Cintas Corporation (CTAS) Stock Valuation — DCF Analysis
Specialty Business Services · NASDAQ
Current Price
$176.28
Intrinsic Value
$165.27
-6.7% 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 valuation
A base case discounted cash flow model for CTAS estimates an intrinsic value of about $165.27 per share, against a current price of $176.28. The model assumes 11.3% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$165.27
Margin of safety
-6.7%
Expected annual return
-1.3%
Base case assumptions: 11.3% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
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)
$27.46
FCF/Share (TTM)
$4.45
ROIC (TTM)
23.2%
ROE (TTM)
41.5%
P/FCF
39.4x
EV/EBITDA
24.1x
FCF Yield
2.54%
Debt/Equity
0.61x
Based on trailing twelve-month data, CTAS shows a free cash flow per share of $4.45 and a ROIC of 23.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 39.4x and FCF yield of 2.54% are important context metrics when evaluating CTAS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of CTAS?
Cintas Corporation currently generates $4.45 in free cash flow per share. At the current price of $176.28, 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 39.4x with a free cash flow yield of 2.54%. This P/FCF is in a moderate range. 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 ($4.45) 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 0.61x, 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 23.2% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
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 0.61x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 24.1x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.