Verdict
Overvalued
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What is Cintas Corporation (CTAS) worth?
Currently $200.47 — 20% premium to Dolphy’s fair value · ● live
● live · as of 2026-09-04 23:05 · 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 $200.47 — 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 across three segments: Uniform Rental & Facility Services, First Aid & Safety Services, and Other (Fire Protection + Direct Sale of Uniforms). Its business quality is outstanding: FY2025 revenue of $10.34 billion (+9%), net income of $1.81 billion, diluted EPS of $4.40; gross margin exceeded 50%, operating margin 22.8%, ROE above 41%. The first three quarters of FY2026 continued the strong trend, with nine-month diluted EPS already at $3.65 and organic growth around 8%.
The company is pursuing the acquisition of UniFirst (approximately $5.3 billion), a landscape-altering horizontal consolidation. However, it has received a second request from the FTC; antitrust review is the biggest uncertainty. Closing is expected in the second half of calendar 2026.
The issue is valuation: trailing P/E of about 37.6x, EV/EBITDA around 26x—both at the high end of historical ranges. Our fair value is approximately $167, below the current market price, leading us to view the stock as fairly valued to slightly expensive. The business is impeccable, but the price fully reflects its compounding characteristics.
How we value it
DCF + peer company P/E (for a high‑quality compounding business services company)
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 $200.47 — 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 $200.47.
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.