Cintas Corporation (CTAS) Stock Valuation — PE Analysis
Specialty Business Services · NASDAQ
Current Price
$201.50
PE Ratio (TTM)
40.5x
Intrinsic Value
$241.12
+16.4% margin of safety
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 PE valuation
At a current price of $201.5, the base case PE valuation puts CTAS fair value near $241.12 per share. That figure assumes 11.4% yearly earnings growth, a target PE multiple of 40.3x, and a 10% discount rate.
Intrinsic Value
$241.12
Margin of safety
+16.4%
Expected annual return
+3.7%
Base case assumptions: 11.4% annual earnings growth, 40.3x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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)
40.5x
PEG Ratio
3.71
Earnings Yield
2.48%
ROE (TTM)
41.8%
Revenue/Share (TTM)
$28.15
Dividend Yield
0.93%
Debt/Equity
0.53x
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 40.5x combined with a PEG ratio of 3.71 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. 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 (40.5x) against the Specialty Business Services median to assess relative pricing, (2) check the PEG ratio (3.71) 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 3.71, calculated by dividing the PE ratio (40.5x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 41.8%, 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 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.