Discounted Cash Flow (DCF) Analysis Unlevered

Cintas Corporation (CTAS)

$452.62

-6.79 (-1.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 161.17 | 452.62 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,476.636,892.307,085.127,116.347,854.468,247.748,660.719,094.369,549.7310,027.89
Revenue (%)
EBITDA 1,289.251,566.571,542.411,773.911,987.311,890.951,985.632,085.052,189.452,299.08
EBITDA (%)
EBIT 1,009.831,206.481,163.361,385.961,587.611,471.481,545.161,622.531,703.771,789.08
EBIT (%)
Depreciation 279.42360.09379.05387.95399.70419.47440.47462.52485.68510
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 138.7296.64145.40493.6490.47225.74237.04248.91261.37274.46
Total Cash (%)
Account Receivables 824.22917.59870.37923.991,027.931,062.231,115.411,171.261,229.911,291.49
Account Receivables (%)
Inventories 280.35334.591,179.311,291.901,388.861,017.181,068.121,121.601,177.761,236.73
Inventories (%)
Accounts Payable 215.07226.02231230.79251.50268.97282.43296.58311.43327.02
Accounts Payable (%)
Capital Expenditure -271.70-276.72-230.29-143.47-240.67-272.84-286.50-300.85-315.91-331.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 452.62
Beta 1.370
Diluted Shares Outstanding 105.52
Cost of Debt
Tax Rate 17.55
After-tax Cost of Debt 2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.979
Total Debt 2,968.44
Total Equity 47,761.82
Total Capital 50,730.26
Debt Weighting 5.85
Equity Weighting 94.15
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,476.636,892.307,085.127,116.347,854.468,247.748,660.719,094.369,549.7310,027.89
EBITDA 1,289.251,566.571,542.411,773.911,987.311,890.951,985.632,085.052,189.452,299.08
EBIT 1,009.831,206.481,163.361,385.961,587.611,471.481,545.161,622.531,703.771,789.08
Tax Rate -0.19%19.72%17.22%13.73%17.55%13.61%13.61%13.61%13.61%13.61%
EBIAT 1,011.73968.54963.011,195.701,309.011,271.271,334.921,401.761,471.951,545.65
Depreciation 279.42360.09379.05387.95399.70419.47440.47462.52485.68510
Accounts Receivable --93.3847.23-53.62-103.94-34.30-53.19-55.85-58.65-61.58
Inventories --54.24-844.72-112.59-96.95371.67-50.93-53.48-56.16-58.97
Accounts Payable -10.954.98-0.2120.7217.4613.4714.1414.8515.59
Capital Expenditure -271.70-276.72-230.29-143.47-240.67-272.84-286.50-300.85-315.91-331.73
UFCF 1,019.45915.24319.261,273.751,287.871,772.721,398.231,468.241,541.761,618.96
WACC
PV UFCF 1,618.331,165.291,117.071,070.841,026.53
SUM PV UFCF 5,998.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.54
Free cash flow (t + 1) 1,651.34
Terminal Value 21,901.01
Present Value of Terminal Value 13,886.75

Intrinsic Value

Enterprise Value 19,884.81
Net Debt 2,877.97
Equity Value 17,006.84
Shares Outstanding 105.52
Equity Value Per Share 161.17