Intrinsic value of Cintas - CTAS

Previous Close

$157.19

  Intrinsic Value

$198.64

stock screener

  Rating & Target

buy

+26%

Previous close

$157.19

 
Intrinsic value

$198.64

 
Up/down potential

+26%

 
Rating

buy

We calculate the intrinsic value of CTAS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 16.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.99
  27.20
  24.98
  22.98
  21.18
  19.57
  18.11
  16.80
  15.62
  14.56
  13.60
  12.74
  11.97
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.05
Revenue, $m
  5,323
  6,771
  8,462
  10,407
  12,612
  15,079
  17,810
  20,801
  24,050
  27,551
  31,298
  35,286
  39,508
  43,961
  48,640
  53,542
  58,666
  64,013
  69,584
  75,381
  81,411
  87,679
  94,193
  100,962
  107,996
  115,308
  122,911
  130,820
  139,050
  147,618
  156,542
Variable operating expenses, $m
 
  5,612
  6,944
  8,476
  10,213
  12,157
  14,308
  16,664
  19,223
  21,981
  24,933
  27,796
  31,122
  34,630
  38,315
  42,177
  46,214
  50,425
  54,814
  59,381
  64,130
  69,068
  74,199
  79,531
  85,072
  90,833
  96,822
  103,052
  109,535
  116,284
  123,314
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  4,550
  5,612
  6,944
  8,476
  10,213
  12,157
  14,308
  16,664
  19,223
  21,981
  24,933
  27,796
  31,122
  34,630
  38,315
  42,177
  46,214
  50,425
  54,814
  59,381
  64,130
  69,068
  74,199
  79,531
  85,072
  90,833
  96,822
  103,052
  109,535
  116,284
  123,314
Operating income, $m
  774
  1,159
  1,518
  1,931
  2,399
  2,923
  3,502
  4,137
  4,827
  5,570
  6,365
  7,490
  8,386
  9,331
  10,324
  11,365
  12,453
  13,588
  14,770
  16,001
  17,281
  18,611
  19,994
  21,430
  22,924
  24,476
  26,090
  27,768
  29,515
  31,334
  33,228
EBITDA, $m
  971
  1,544
  1,930
  2,374
  2,877
  3,440
  4,062
  4,745
  5,486
  6,284
  7,139
  8,049
  9,012
  10,027
  11,095
  12,213
  13,382
  14,601
  15,872
  17,194
  18,570
  19,999
  21,485
  23,029
  24,634
  26,301
  28,036
  29,840
  31,717
  33,671
  35,707
Interest expense (income), $m
  0
  103
  144
  193
  249
  312
  382
  460
  546
  639
  739
  846
  960
  1,081
  1,209
  1,342
  1,483
  1,629
  1,782
  1,942
  2,108
  2,280
  2,459
  2,646
  2,840
  3,041
  3,250
  3,468
  3,694
  3,929
  4,174
Earnings before tax, $m
  687
  1,056
  1,374
  1,738
  2,150
  2,611
  3,120
  3,677
  4,281
  4,931
  5,626
  6,644
  7,426
  8,250
  9,116
  10,023
  10,970
  11,958
  12,988
  14,059
  15,173
  16,331
  17,534
  18,785
  20,084
  21,435
  22,840
  24,301
  25,821
  27,405
  29,054
Tax expense, $m
  230
  285
  371
  469
  581
  705
  842
  993
  1,156
  1,331
  1,519
  1,794
  2,005
  2,228
  2,461
  2,706
  2,962
  3,229
  3,507
  3,796
  4,097
  4,409
  4,734
  5,072
  5,423
  5,787
  6,167
  6,561
  6,972
  7,399
  7,845
Net income, $m
  481
  771
  1,003
  1,269
  1,570
  1,906
  2,278
  2,684
  3,125
  3,600
  4,107
  4,850
  5,421
  6,023
  6,655
  7,316
  8,008
  8,730
  9,481
  10,263
  11,076
  11,922
  12,800
  13,713
  14,661
  15,648
  16,673
  17,740
  18,850
  20,005
  21,209

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  191
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,844
  8,464
  10,578
  13,009
  15,765
  18,849
  22,262
  26,002
  30,063
  34,439
  39,123
  44,107
  49,385
  54,951
  60,800
  66,927
  73,333
  80,016
  86,980
  94,227
  101,764
  109,599
  117,741
  126,202
  134,995
  144,135
  153,639
  163,525
  173,812
  184,522
  195,678
Adjusted assets (=assets-cash), $m
  6,653
  8,464
  10,578
  13,009
  15,765
  18,849
  22,262
  26,002
  30,063
  34,439
  39,123
  44,107
  49,385
  54,951
  60,800
  66,927
  73,333
  80,016
  86,980
  94,227
  101,764
  109,599
  117,741
  126,202
  134,995
  144,135
  153,639
  163,525
  173,812
  184,522
  195,678
Revenue / Adjusted assets
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
  0.800
Average production assets, $m
  1,515
  1,930
  2,412
  2,966
  3,594
  4,298
  5,076
  5,928
  6,854
  7,852
  8,920
  10,056
  11,260
  12,529
  13,862
  15,259
  16,720
  18,244
  19,831
  21,484
  23,202
  24,988
  26,845
  28,774
  30,779
  32,863
  35,030
  37,284
  39,629
  42,071
  44,615
Working capital, $m
  823
  1,266
  1,582
  1,946
  2,358
  2,820
  3,330
  3,890
  4,497
  5,152
  5,853
  6,598
  7,388
  8,221
  9,096
  10,012
  10,971
  11,970
  13,012
  14,096
  15,224
  16,396
  17,614
  18,880
  20,195
  21,563
  22,984
  24,463
  26,002
  27,605
  29,273
Total debt, $m
  3,134
  4,128
  5,511
  7,101
  8,903
  10,920
  13,152
  15,598
  18,254
  21,116
  24,179
  27,439
  30,891
  34,531
  38,356
  42,364
  46,553
  50,924
  55,478
  60,217
  65,147
  70,270
  75,595
  81,129
  86,880
  92,858
  99,073
  105,538
  112,266
  119,271
  126,566
Total liabilities, $m
  4,541
  5,535
  6,918
  8,508
  10,310
  12,327
  14,559
  17,005
  19,661
  22,523
  25,586
  28,846
  32,298
  35,938
  39,763
  43,771
  47,960
  52,331
  56,885
  61,624
  66,554
  71,677
  77,002
  82,536
  88,287
  94,265
  100,480
  106,945
  113,673
  120,678
  127,973
Total equity, $m
  2,303
  2,928
  3,660
  4,501
  5,455
  6,522
  7,703
  8,997
  10,402
  11,916
  13,537
  15,261
  17,087
  19,013
  21,037
  23,157
  25,373
  27,686
  30,095
  32,602
  35,210
  37,921
  40,738
  43,666
  46,708
  49,871
  53,159
  56,580
  60,139
  63,845
  67,705
Total liabilities and equity, $m
  6,844
  8,463
  10,578
  13,009
  15,765
  18,849
  22,262
  26,002
  30,063
  34,439
  39,123
  44,107
  49,385
  54,951
  60,800
  66,928
  73,333
  80,017
  86,980
  94,226
  101,764
  109,598
  117,740
  126,202
  134,995
  144,136
  153,639
  163,525
  173,812
  184,523
  195,678
Debt-to-equity ratio
  1.361
  1.410
  1.510
  1.580
  1.630
  1.670
  1.710
  1.730
  1.750
  1.770
  1.790
  1.800
  1.810
  1.820
  1.820
  1.830
  1.830
  1.840
  1.840
  1.850
  1.850
  1.850
  1.860
  1.860
  1.860
  1.860
  1.860
  1.870
  1.870
  1.870
  1.870
Adjusted equity ratio
  0.317
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346
  0.346

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  481
  771
  1,003
  1,269
  1,570
  1,906
  2,278
  2,684
  3,125
  3,600
  4,107
  4,850
  5,421
  6,023
  6,655
  7,316
  8,008
  8,730
  9,481
  10,263
  11,076
  11,922
  12,800
  13,713
  14,661
  15,648
  16,673
  17,740
  18,850
  20,005
  21,209
Depreciation, amort., depletion, $m
  197
  385
  412
  443
  478
  517
  560
  608
  659
  714
  774
  559
  626
  696
  770
  848
  929
  1,014
  1,102
  1,194
  1,289
  1,388
  1,491
  1,599
  1,710
  1,826
  1,946
  2,071
  2,202
  2,337
  2,479
Funds from operations, $m
  683
  1,156
  1,415
  1,712
  2,048
  2,423
  2,838
  3,292
  3,784
  4,314
  4,881
  5,409
  6,046
  6,719
  7,425
  8,164
  8,937
  9,743
  10,583
  11,457
  12,365
  13,310
  14,291
  15,311
  16,371
  17,473
  18,619
  19,811
  21,051
  22,343
  23,688
Change in working capital, $m
  -81
  271
  316
  364
  412
  461
  511
  559
  608
  655
  701
  746
  790
  833
  875
  917
  958
  1,000
  1,042
  1,084
  1,128
  1,172
  1,218
  1,266
  1,315
  1,367
  1,422
  1,479
  1,539
  1,602
  1,669
Cash from operations, $m
  764
  886
  1,099
  1,348
  1,635
  1,962
  2,327
  2,732
  3,176
  3,659
  4,180
  4,663
  5,257
  5,886
  6,550
  7,247
  7,979
  8,743
  9,541
  10,372
  11,238
  12,138
  13,073
  14,046
  15,056
  16,106
  17,197
  18,332
  19,512
  20,740
  22,019
Maintenance CAPEX, $m
  0
  -84
  -107
  -134
  -165
  -200
  -239
  -282
  -329
  -381
  -436
  -496
  -559
  -626
  -696
  -770
  -848
  -929
  -1,014
  -1,102
  -1,194
  -1,289
  -1,388
  -1,491
  -1,599
  -1,710
  -1,826
  -1,946
  -2,071
  -2,202
  -2,337
New CAPEX, $m
  -273
  -415
  -482
  -554
  -628
  -703
  -778
  -853
  -926
  -998
  -1,068
  -1,136
  -1,203
  -1,269
  -1,333
  -1,397
  -1,460
  -1,524
  -1,588
  -1,652
  -1,718
  -1,786
  -1,856
  -1,929
  -2,005
  -2,084
  -2,167
  -2,254
  -2,345
  -2,442
  -2,543
Cash from investing activities, $m
  -2,310
  -499
  -589
  -688
  -793
  -903
  -1,017
  -1,135
  -1,255
  -1,379
  -1,504
  -1,632
  -1,762
  -1,895
  -2,029
  -2,167
  -2,308
  -2,453
  -2,602
  -2,754
  -2,912
  -3,075
  -3,244
  -3,420
  -3,604
  -3,794
  -3,993
  -4,200
  -4,416
  -4,644
  -4,880
Free cash flow, $m
  -1,546
  386
  509
  660
  842
  1,059
  1,310
  1,598
  1,921
  2,281
  2,676
  3,031
  3,495
  3,991
  4,520
  5,080
  5,671
  6,291
  6,940
  7,618
  8,326
  9,062
  9,829
  10,625
  11,452
  12,312
  13,205
  14,132
  15,095
  16,097
  17,138
Issuance/(repayment) of debt, $m
  1,733
  1,185
  1,383
  1,590
  1,802
  2,017
  2,232
  2,446
  2,656
  2,862
  3,063
  3,260
  3,452
  3,640
  3,825
  4,008
  4,189
  4,371
  4,554
  4,740
  4,929
  5,124
  5,325
  5,534
  5,751
  5,978
  6,216
  6,465
  6,728
  7,004
  7,296
Issuance/(repurchase) of shares, $m
  11
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,721
  1,185
  1,383
  1,590
  1,802
  2,017
  2,232
  2,446
  2,656
  2,862
  3,063
  3,260
  3,452
  3,640
  3,825
  4,008
  4,189
  4,371
  4,554
  4,740
  4,929
  5,124
  5,325
  5,534
  5,751
  5,978
  6,216
  6,465
  6,728
  7,004
  7,296
Total cash flow (excl. dividends), $m
  172
  1,571
  1,892
  2,250
  2,644
  3,076
  3,542
  4,043
  4,577
  5,143
  5,739
  6,291
  6,947
  7,631
  8,345
  9,088
  9,860
  10,661
  11,494
  12,358
  13,255
  14,186
  15,154
  16,159
  17,203
  18,290
  19,420
  20,597
  21,823
  23,101
  24,434
Retained Cash Flow (-), $m
  -460
  -625
  -732
  -841
  -953
  -1,067
  -1,181
  -1,294
  -1,405
  -1,514
  -1,621
  -1,725
  -1,826
  -1,926
  -2,024
  -2,120
  -2,216
  -2,312
  -2,409
  -2,508
  -2,608
  -2,711
  -2,817
  -2,928
  -3,042
  -3,163
  -3,288
  -3,420
  -3,559
  -3,706
  -3,860
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  946
  1,161
  1,408
  1,691
  2,009
  2,361
  2,749
  3,172
  3,629
  4,119
  4,566
  5,120
  5,706
  6,322
  6,968
  7,643
  8,349
  9,085
  9,850
  10,647
  11,476
  12,336
  13,231
  14,161
  15,127
  16,132
  17,177
  18,264
  19,396
  20,574
Discount rate, %
 
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
PV of cash for distribution, $m
 
  879
  995
  1,106
  1,207
  1,291
  1,355
  1,394
  1,407
  1,393
  1,351
  1,265
  1,181
  1,081
  969
  851
  731
  614
  505
  405
  317
  242
  180
  131
  92
  63
  42
  27
  17
  10
  6
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services. Its segments include uniform rental and facility services, and first aid and safety services. Its uniform rental and facility service segment offers services, which include rental and servicing of uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items. Its first aid and safety service segment offers services, which include first aid and safety products and services. Rental processing plants, rental branches, first aid and safety facilities, fire protection facilities, direct sales offices, distribution centers and manufacturing facilities are all utilized by the businesses included in All Other.

FINANCIAL RATIOS  of  Cintas (CTAS)

Valuation Ratios
P/E Ratio 34.4
Price to Sales 3.1
Price to Book 7.2
Price to Tangible Book
Price to Cash Flow 21.7
Price to Free Cash Flow 33.7
Growth Rates
Sales Growth Rate 11%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -0.7%
Cap. Spend. - 3 Yr. Gr. Rate 13.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.6
LT Debt to Equity 120.3%
Total Debt to Equity 136.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 8.8%
Ret/ On Assets - 3 Yr. Avg. 11.8%
Return On Total Capital 11.2%
Ret/ On T. Cap. - 3 Yr. Avg. 15.3%
Return On Equity 23.2%
Return On Equity - 3 Yr. Avg. 27%
Asset Turnover 1
Profitability Ratios
Gross Margin 43.2%
Gross Margin - 3 Yr. Avg. 43.5%
EBITDA Margin 16.6%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 14.5%
Oper. Margin - 3 Yr. Avg. 15.4%
Pre-Tax Margin 12.9%
Pre-Tax Margin - 3 Yr. Avg. 14.1%
Net Profit Margin 9%
Net Profit Margin - 3 Yr. Avg. 11.1%
Effective Tax Rate 33.5%
Eff/ Tax Rate - 3 Yr. Avg. 35.6%
Payout Ratio 29.5%

CTAS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTAS stock intrinsic value calculation we used $5323 million for the last fiscal year's total revenue generated by Cintas. The default revenue input number comes from 2017 income statement of Cintas. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CTAS stock valuation model: a) initial revenue growth rate of 27.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.6%, whose default value for CTAS is calculated based on our internal credit rating of Cintas, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Cintas.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CTAS stock the variable cost ratio is equal to 84%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CTAS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Cintas.

Corporate tax rate of 27% is the nominal tax rate for Cintas. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CTAS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CTAS are equal to 28.5%.

Life of production assets of 18 years is the average useful life of capital assets used in Cintas operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CTAS is equal to 18.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2303 million for Cintas - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 106.307 million for Cintas is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Cintas at the current share price and the inputted number of shares is $16.7 billion.

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COMPANY NEWS

▶ Cintas At Upper End Of Buy Range With Earnings Due   [Dec-13-17 03:00AM  Investor's Business Daily]
▶ How Safe Is Cintas Corp.'s Dividend?   [Dec-12-17 03:34PM  Motley Fool]
▶ 3 Stocks You Can Safely Own Until 2030   [Dec-10-17 08:11AM  Motley Fool]
▶ Earnings Season Watch List: Cintas   [Dec-06-17 03:00AM  Investor's Business Daily]
▶ Multiple Companies Reach Yearly Highs   [Dec-05-17 11:09AM  GuruFocus.com]
▶ 3 Unknown Dividend Aristocrats Returning 10%+ Annually   [Nov-29-17 11:40AM  InvestorPlace]
▶ Stocks With Rising Relative Price Strength: Cintas   [03:00AM  Investor's Business Daily]
▶ OdySea Aquarium Reels in Americas Best Restroom® Title   [Nov-16-17 01:27PM  Business Wire]
▶ Wall Street Has No Clue About Cintas   [Nov-01-17 04:37PM  TheStreet.com]
▶ These 3 Stocks Just Raised Their Dividends   [Oct-24-17 08:17AM  Motley Fool]
▶ ETFs with exposure to Cintas Corp. : October 23, 2017   [Oct-23-17 10:30AM  Capital Cube]
▶ Cintas raises annual dividend 22%   [08:25AM  MarketWatch]
▶ 'Trump Stock' Cintas: Cramer's Top Takeaways   [06:58AM  TheStreet.com]
▶ Cintas a 'terrific' play on job growth   [07:01PM  CNBC Videos]
▶ ETFs with exposure to Cintas Corp. : October 12, 2017   [Oct-12-17 10:23AM  Capital Cube]
▶ Here are the top 10 Cincinnati stocks so far this year: SLIDESHOW   [Oct-10-17 04:56PM  American City Business Journals]
▶ [$$] Memory Chip Maker Micron Elbows Ahead   [Sep-30-17 12:52AM  Barrons.com]
▶ 3 Growth Dividend Stocks for September   [Sep-29-17 08:00PM  Motley Fool]
▶ Highly Rated Stock Gaps Up Into Buy Zone; Earns Rating Upgrade   [Sep-28-17 10:50AM  Investor's Business Daily]
▶ Company News For Sep 28, 2017   [09:52AM  Zacks]
▶ 3 Ultra Cheap Value Stocks   [Sep-27-17 09:24PM  Zacks]
▶ Cintas Looks Unstoppable   [01:02PM  TheStreet.com]
▶ Cintas tops Street 1Q forecasts   [Sep-26-17 09:39PM  Associated Press]
▶ Which of these restrooms is Americas best? PHOTOS   [Sep-21-17 11:40AM  American City Business Journals]
▶ Is It Too Late To Buy Cintas Corporation (CTAS)?   [Sep-18-17 09:07AM  Simply Wall St.]
▶ Only One Week Left to Vote for Canadas Best Restroom®   [Aug-31-17 09:00AM  Business Wire]
▶ ETFs with exposure to Cintas Corp. : August 28, 2017   [Aug-28-17 05:05PM  Capital Cube]
Financial statements of CTAS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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