Switch to:
Cintas Corp (NAS:CTAS)
Intrinsic Value (FCF Projected)
$58.28 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, Cintas Corp's FCF projected intrinsic value is $58.28. The stock price of Cintas Corp is $86.01. Therefore, Cintas Corp's Price to Intrinsic Value (FCF Projected) Ratio of today is 1.5.

CTAS' s 10-Year Price to Intrinsic Value (FCF Projected) Range
Min: 0.53   Max: 7.15
Current: 1.5

0.53
7.15

During the past 13 years, the highest Price to Intrinsic Value (FCF Projected) Ratio of Cintas Corp was 7.15. The lowest was 0.53. And the median was 1.21.

CTAS's Price to Intrinsic Value (FCF Projected) is ranked higher than
82% of the 1276 Companies
in the Global Business Services industry.

( Industry Median: 0.00 vs. CTAS: 1.50 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Cintas Corp's FCF(6 year avg) is calculate as

Cintas Corp Quarterly Data

201211201302201305201308201311201402201405201408201411201502
total_freecashflow 818814045100127190809935
201005201008201011201102201105201108201111201202201205201208
total_freecashflow 104-1334459312849411947
200905200908200911201002
total_freecashflow 156120126104

Add all the Free Cash Flow together and divide 6 will get Cintas Corp's FCF(6 year avg) = $351.95.

Cintas Corp's FCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Feb15)*0.8)/Shares Outstanding
=(14.8626533105*351.946833333+2047.666*0.8)/117.867
=58.28

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

Cintas Corp's Price to FCF Projected Intrinsic Value Ratio for today is calculated as

Price to FCF Projected Intrinsic Value=Share Price/FCF Projected Intrinsic Value
=86.01/58.2775209987
=1.48

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cintas Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
iv_dcf_share 25.9429.5234.7138.5037.4034.1933.9136.6745.1257.52

Cintas Corp Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
iv_dcf_share 39.2941.3745.1247.3448.7352.9557.5260.5360.8858.28
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK