Cintas Corporation (CTAS) DCF Valuation
TGM's two-stage DCF values Cintas Corporation (CTAS) between $56.68 and $105.18 depending on assumptions, with a base case of $76.26. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8.8%) reflects its beta.
What would today's price require?
$176.71 is justified only if free cash flow grows about +30.3% a year (fading to 2.5% long-run) at a 8.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 6.8%/yr | 9.8% | $56.68 |
| Base case | 9.8%/yr | 8.8% | $76.26 |
| Optimistic | 12.8%/yr | 7.8% | $105.18 |
| Analyst DCF (FMP) | independent reference — different model | $138.48 | |
Current Price
$176.71
Market-Implied Growth
+30.3%/yr
vs +9.8% 5Y actual
Model Scenario Range
$56.68 – $105.18
model output — not a price target
CTAS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for CTAS (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.5B · 0.40B shares · net debt $2.2B
Estimated Fair Value
$99.71
-43.6% vs $176.71
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 9.8%/yr FCF growth and 10-year horizon fixed. Green = above today's $176.71; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.8% | $132 | $142 | $155 | $170 | $191 |
| 7.8% | $107 | $114 | $122 | $131 | $143 |
| 8.8% | $90.10 | $94.55 | $99.71 | $106 | $113 |
| 9.8% | $77.02 | $80.16 | $83.74 | $87.84 | $92.59 |
| 10.8% | $66.85 | $69.14 | $71.71 | $74.60 | $77.90 |
About Cintas Corporation
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.
- Sector
- Industrials
- Industry
- Specialty Business Services
- CEO
- Todd Schneider