COMPILED BY GEMINI 3.1

Cintas (CTAS) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$38.40 per share
Current Price $189.19
Margin of Safety -79.7%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
9.0%

" data-astro-cid-6gxvkmz2>The 10-year Treasury yields 4.18%. For a stable, wide-moat business like Cintas, we apply a required return (discount rate) of 9%. This reflects its dominant market position, recurring revenue model, and low historical volatility.

Discount Rate (WACC)
10.0%

" data-astro-cid-6gxvkmz2>The 10-year Treasury yields 4.18%. For a stable, wide-moat business like Cintas, we apply a required return (discount rate) of 9%. This reflects its dominant market position, recurring revenue model, and low historical volatility.

Terminal Growth Rate
3.0%

" data-astro-cid-6gxvkmz2>We assume Cintas will grow cash flows at 3% in perpetuity after year 5. This is slightly above standard long-term GDP growth, reflecting its pricing power and structural tailwinds in the uniform and facilities services market.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 2.0%2.5%3.0%3.5%4.0%
2.0% $44.80 $38.40 $33.60 $29.87 $26.88
2.5% $48.87 $41.35 $35.84 $31.62 $28.29
3.0% $53.76 $44.80 $38.40 $33.60 $29.87
3.5% $59.73 $48.87 $41.35 $35.84 $31.62
4.0% $67.20 $53.76 $44.80 $38.40 $33.60

Undervalued vs current price Overvalued vs current price

Economic Prospect Score

80 / 100
Strong Prospect

Cintas is a dominant force in the highly fragmented uniform and facility services industry. Its massive scale and unparalleled route density create incredibly strong competitive advantages that smaller regional players simply cannot replicate. Operating since 1929, the company consistently drives high single-digit revenue growth and steady margin expansion. While trading at a premium valuation, its durable business model and aggressive capital allocation make it a highly attractive long-term prospect.

Competitive Momentum 27/35

Cintas exhibits strong momentum driven by consistent market share gains, robust cross-selling, and a relentless focus on route density optimization.

Moat Durability 31/35

Cintas boasts a tremendously wide moat built squarely on route density and scale efficiencies, creating an almost insurmountable barrier to entry for large-scale competitors.

Sentiment & Catalysts 22/30

Market sentiment is overwhelmingly positive, acknowledging Cintas's operational excellence, though valuation multiples remain consistently demanding.

⚠️ Key Risks

🚀 Key Catalysts

Frequently Asked Questions

Why use a 9% discount rate instead of 10% or higher?

Westmount Research. "Cintas (CTAS) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.