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Cintas Corp (CTAS) — WACC Analysis

WACC Breakdown

Cintas Corp (CTAS) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 8.6%, derived from a beta of 0.78 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.1%. The capital structure is 96.8% equity and 3.2% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of Cintas Corp.

Investors can compare CTAS's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 0.78 reflects the stock's volatility relative to the broader market.

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VALUATION

CTAS WACC: 8.39% for Cintas Corp

Current inputs imply a 8.57% cost of equity and a 3.93% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Cintas Corp Common Stock (CTAS) WACC Results
Weighted Average Cost of Capital
8.39%
Cost of Equity
8.57%
Risk-Free Rate4.96%
Beta0.78
Market Risk Premium4.23%
Cost of Debt
3.11%
Pre-Tax Cost of Debt3.93%
Tax Rate21.00%
Tax Shield0.83%
Capital Structure
Equity: 96.80%($80.36B)
Debt: 3.20%($2656.79M)
Equity Component
8.30%
96.80% × 8.57%
Debt Component
0.10%
3.20% × 3.11%

Cintas Corp (CTAS) WACC in context

Cintas Corp (CTAS) currently screens with an estimated WACC of 8.39%. That blends a 8.57% cost of equity, a 3.93% pre-tax cost of debt, and a 96.80% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What CTAS WACC implies

A 8.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CTAS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.78 and equity accounts for 96.80% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.