Cintas - Comparative Multiple Analysis

Cintas (Comparative Multiple Analysis)

placeholder_large_analysis.png
Banner%20-%20The%20perfect%20tool%20for%20investors%281%29.gif

Notes on the Comparative Multiple Analysis of Cintas

WikiWealth compares Cintas's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Cintas's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Cintas.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Cintas's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Cintas's Analysis


How does this work? The Comparative Investment Analysis determines the value of Cintas by comparing Cintas financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Cintas.

See the Cintas cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Cintas.

Also, see the Cintas's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Cintas's valuation conclusion for a quick summary.