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    CTAS · NMS · Industrials

    Cintas Corporation

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 98.85

    Market price

    USD 224.77

    Implied upside

    -56.0%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-05-31

    Current EV/EBITDA of 29.2x sits outside a defensible 3-20x band, so the exit multiple is capped at 20.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.

    Value Per Share

    Perpetuity growth
    USD 98.85-56.0%
    Exit multiple
    USD 151.59-32.6%
    Market price
    USD 224.77

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn2bn3bnFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 12.2bnUSD 13.2bnUSD 14.1bnUSD 15.0bnUSD 15.8bnUSD 16.6bnUSD 17.3bnUSD 18.0bnUSD 18.5bnUSD 19.0bn+5.0%
    EBITUSD 2.7bnUSD 2.9bnUSD 3.1bnUSD 3.3bnUSD 3.5bnUSD 3.7bnUSD 3.8bnUSD 4.0bnUSD 4.1bnUSD 4.2bn+5.0%
    NOPATUSD 2.2bnUSD 2.3bnUSD 2.5bnUSD 2.6bnUSD 2.8bnUSD 2.9bnUSD 3.0bnUSD 3.2bnUSD 3.3bnUSD 3.3bn+5.0%
    Add depreciation & amortisationUSD 577.1mUSD 620.5mUSD 663.3mUSD 704.9mUSD 744.7mUSD 782.0mUSD 816.3mUSD 847.0mUSD 873.5mUSD 895.3m+5.0%
    Less capital expenditureUSD -474.0mUSD -523.3mUSD -574.0mUSD -625.4mUSD -677.0mUSD -728.1mUSD -777.9mUSD -825.7mUSD -870.6mUSD -912.0m+7.5%
    Capex, % of revenue3.9%4.0%4.1%4.2%4.3%4.4%4.5%4.6%4.7%4.8%-
    Less increase in working capitalUSD -243.0mUSD -228.4mUSD -225.1mUSD -218.7mUSD -209.1mUSD -196.3mUSD -180.3mUSD -161.2mUSD -139.3mUSD -114.8m-8.0%
    Free cashflow to firmUSD 2.0bnUSD 2.2bnUSD 2.3bnUSD 2.5bnUSD 2.6bnUSD 2.8bnUSD 2.9bnUSD 3.0bnUSD 3.1bnUSD 3.2bn+5.3%
    Discount factor0.95960.88380.81390.74950.69030.63570.58540.53910.49650.4572-
    Present valueUSD 1.9bnUSD 1.9bnUSD 1.9bnUSD 1.9bnUSD 1.8bnUSD 1.8bnUSD 1.7bnUSD 1.6bnUSD 1.5bnUSD 1.5bn-
    Present Value Of The ForecastUSD 17.5bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.904Reported 0.857, pulled toward 1.0 (Blume)
    Cost of equity8.72%Risk-free + beta x equity risk premium
    Cost of debt5.29%Risk-free + 40bp, the spread for a AAA rating at 24.7x interest cover. Book interest / average debt was lower, at 4.0%.
    Market capitalisationUSD 89.3bn97.1% of capital
    Total debtUSD 2.7bn2.9% of capital, book value as a proxy
    Tax rate20.3%Effective, capped at statutory
    WACC8.59%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 98.85

    59% of EV

    Forecast FCFF, final year
    USD 3.2bn
    Capex at depreciation, working capital in reinvestment
    USD 3.6bn
    Less reinvestment at g/ROIC (9.9% of NOPAT)
    USD -355.3m
    Capitalised
    USD 3.3bn
    ROIC (reported)
    25.4%
    Terminal value, undiscounted
    USD 54.7bn
    Terminal value, discounted
    USD 25.0bn
    Enterprise value
    USD 42.6bn
    Less net debt
    USD 2.4bn
    Equity value
    USD 40.2bn

    Exit at 20.0x EBITDA

    Value per shareUSD 151.59

    73% of EV

    Terminal value, undiscounted
    USD 101.6bn
    Terminal value, discounted
    USD 46.5bn
    Enterprise value
    USD 64.0bn
    Less net debt
    USD 2.4bn
    Equity value
    USD 61.6bn

    Spread between methods: 42%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    6.59%133.25141.02150.80163.42180.26
    7.59%109.70114.21119.70126.47134.99
    8.59%92.8495.5998.85102.77107.52
    9.59%80.2081.9183.9286.2889.09
    10.59%70.3771.4572.7074.1575.86

    Outlined: this model. Green text: above today's price of 224.77. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year8.5%5.4%15.5%
    EBIT margin23.3%22.0%49.6%
    Discount rate-8.6%5.3%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.