Verdict
Overvalued
What is Cintas Corporation (CTAS) worth?
Currently $200.41 — 20% premium to Dolphy’s fair value · ● live
● live · as of 2026-07-21 21:28 · Market cap $71.2B
As of 2026-07-06, Cintas Corporation (CTAS) looks overvalued. Dolphy estimates a fair value of $167.00 versus a current price of $200.41 — a 20% premium to fair value.
Executive summary
Cintas (CTAS) is the undisputed leader in North American uniform rental and facility services, serving over 1 million business customers. Its operations are divided into three segments: 'Uniform Rental and Facility Services,' 'First Aid and Safety Services,' and 'Other (Fire Protection + Uniform Direct Sale).' The company's quality is outstanding: FY2025 revenue $10.34B (+9%), net income $1.81B, diluted EPS $4.40; gross margin above 50%, operating margin 22.8%, ROE over 41%. The first three quarters of FY2026 continued strong, with 9-month diluted EPS reaching $3.65 and organic growth of ~8%.
The company is proceeding with the acquisition of UniFirst (~$5.3B), a transformative horizontal integration that could reshape the industry landscape. However, it has received a second request from the FTC, making antitrust review the biggest variable; closing is expected in the second half of 2026 (calendar year).
The issue is valuation: trailing P/E of ~37.6x, EV/EBITDA of ~26x, both at historical highs. Our fair value is ~$167, below the current price of $177.89, which we judge as fair-to-expensive. The business is impeccable, but the price already fully reflects its compounding attributes.
How we value it
DCF + Comparable P/E (High-Quality Compounder)
Every figure is computed from SEC filings by the analyst’s calculator tools and fact-checked by a second, independent model.
Investment thesis
About Cintas Corporation
Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. In addition, the company offers first aid and safety services, and fire protection products and services. It provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. The company was founded in 1968 and is based in Cincinnati, Ohio. Cintas Corporation was formerly a subsidiary of Cintas Corporation.
Frequently asked questions
Is CTAS a buy?
As of 2026-07-06, Cintas Corporation (CTAS) looks overvalued. Dolphy estimates a fair value of $167.00 versus a current price of $200.41 — a 20% premium to fair value.
What is CTAS's fair value?
Dolphy's estimated fair value for Cintas Corporation (CTAS) is $167.00, versus a current market price of $200.41.
Is CTAS overvalued or undervalued?
Cintas Corporation (CTAS) currently looks overvalued — trading at a 20% premium to Dolphy's estimated fair value of $167.00.
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AI-generated research by Dolphy for educational and informational purposes only — not investment advice. Figures are computed from public sources and may contain errors.