Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Current Valuation Ratios
Cintas Corp., current price multiples
| Cintas Corp. | Industrials | ||
|---|---|---|---|
| Selected Financial Data | |||
| Current share price (P) | |||
| No. shares of common stock outstanding | |||
| Growth rate (g) | |||
| Earnings per share (EPS) | |||
| Next year expected EPS | |||
| Operating profit per share | |||
| Sales per share | |||
| Book value per share (BVPS) | |||
| Valuation Ratios (Price Multiples) | |||
| Price to earnings (P/E) | |||
| Price to next year expected earnings | |||
| Price-earnings-growth (PEG) | |||
| Price to operating profit (P/OP) | |||
| Price to sales (P/S) | |||
| Price to book value (P/BV) | |||
Based on: 10-K (reporting date: 2024-05-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Cintas Corp., historical price multiples
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Price to earnings (P/E) | |||||||
| Price to operating profit (P/OP) | |||||||
| Price to sales (P/S) | |||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited an overall upward trend from 30.3 in 2019 to 48.4 in 2024. There was a moderate increase between 2019 and 2021, stabilizing somewhat around the early 30s before accelerating significantly in the final two years. This suggests growing investor expectations for earnings growth or a rising stock price relative to earnings.
- Price to Operating Profit (P/OP) Ratio
- This ratio also showed a consistent increase over the period, rising from 23.66 in 2019 to 36.77 in 2024. The trend includes fluctuations, with slight declines in certain periods (notably in 2022), but overall, it indicates an increasing premium placed on operating profitability by investors.
- Price to Sales (P/S) Ratio
- The P/S ratio revealed a strong upward trajectory, growing from 3.89 in 2019 to 7.93 in 2024. The increase was steady, with more pronounced jumps observed between 2020 and 2021 and again in the final year. This ratio’s growth implies that market valuation relative to revenue has substantially increased, reflecting growing market confidence or improved revenue quality.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio steadily increased from 8.93 in 2019 to 17.62 in 2024, almost doubling over the six-year span. The trend denotes enhanced investor willingness to pay a higher premium over the book value of the company's equity. This may be indicative of perceived intangible asset growth, higher future profitability expectations, or reduced risk perceptions.
Price to Earnings (P/E)
Cintas Corp., historical P/E calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Cintas Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
The financial data reveals several notable trends in the performance and market valuation over the reviewed years.
- Share Price
- The share price exhibits a consistent upward trajectory throughout the period. Starting at $65.42 in 2019, it increased steadily each year, reaching $188.71 by 2024. This represents a near threefold increase over six years, indicating strong market confidence and positive investor sentiment towards the company.
- Earnings Per Share (EPS)
- EPS showed a slight decline from $2.16 in 2019 to $2.12 in 2020, potentially reflecting challenges in that year. However, from 2020 onwards, EPS consistently rose year over year, reaching $3.90 in 2024. This consistent growth in earnings per share points to improving profitability and effective management of operations.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio fluctuated over the period without a clear uniform trend but generally stayed within a range between approximately 30 and 48. It started at 30.3 in 2019, rose to a peak of 36.18 in 2021, then fluctuated slightly before increasing significantly to 48.4 in 2024. The rising P/E ratio towards the end of the period suggests that investors are willing to pay more per dollar of earnings, possibly indicating expectations of future growth or improved market conditions.
Overall, the data reflect robust growth in both share price and earnings per share, alongside an elevated P/E ratio in the later years. This combination may suggest optimistic market perceptions about the company’s prospects, supported by improving earnings performance.
Price to Operating Profit (P/OP)
Cintas Corp., historical P/OP calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Cintas Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
- Share Price
- The share price has shown a consistent upward trend over the six-year period. Starting at $65.42 in May 2019, it increased steadily each year, reaching $188.71 by May 2024. This represents a nearly threefold increase, indicating strong market confidence and positive investor sentiment towards the company's prospects.
- Operating Profit per Share
- Operating profit per share also exhibited a gradual and continuous increase throughout the period. Beginning at $2.77 in May 2019, it grew annually to reach $5.13 by May 2024. This steady growth in profitability per share suggests effective operational management and an ability to enhance earnings consistently over time.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio displayed some fluctuation, starting at 23.66 in May 2019, rising to a peak of 29.01 in May 2021, before slightly dipping to 26.09 in May 2022. It then climbed again to 36.77 by May 2024, reaching its highest level in the observed period. The increase in this ratio, particularly towards the end of the timeline, signals an increasing valuation multiple relative to operating profit, which may suggest heightened investor expectations for future growth or an elevated market premium.
Price to Sales (P/S)
Cintas Corp., historical P/S calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Cintas Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
- Share Price
- The share price exhibited a consistent upward trend over the six-year span. It increased from $65.42 in May 2019 to $188.71 in May 2024. Notably, there was a significant acceleration in the price rise starting from 2022, culminating in a sharp increase of over 49% between 2023 and 2024.
- Sales per Share
- Sales per share showed steady growth throughout the period, rising from $16.81 in 2019 to $23.81 in 2024. The increase was relatively gradual, with minor variations, indicating incremental revenue generation on a per-share basis. The most pronounced yearly increase occurred between 2021 and 2022.
- Price to Sales Ratio (P/S)
- The P/S ratio demonstrated an overall upward trajectory, increasing from 3.89 in 2019 to 7.93 in 2024. This suggests that the market valuation relative to sales per share has grown significantly, implying higher investor confidence or expectations of future growth. Unlike sales per share, the P/S ratio has shown more variability, including a decline from 5.65 in 2021 to 5.27 in 2022 before resuming an upward momentum.
- Overall Analysis
- The data reveals strong market appreciation for the company’s stock, outpacing the growth in sales per share. The faster increase in share price compared to sales per share, alongside the rising P/S ratio, indicates growing market optimism and possibly expanding valuation multiples. While sales per share growth is positive, it is moderate and steady, suggesting operational expansion or revenue growth at a controlled pace. The volatility observed in the P/S ratio around 2021-2022 may reflect changing market sentiment or external factors impacting valuation during that interval.
Price to Book Value (P/BV)
Cintas Corp., historical P/BV calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Cintas Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
- Share Price
- The share price showed a consistent upward trend over the six-year period. Starting at $65.42 in May 2019, it rose steadily each year, reaching $188.71 in May 2024. The increase was particularly notable between May 2023 and May 2024, where the share price jumped by approximately 49.5%, signaling strong market confidence and potential positive investor sentiment.
- Book Value Per Share (BVPS)
- BVPS experienced moderate growth throughout the period, rising from $7.32 in May 2019 to $10.71 in May 2024. The growth trend was steady, although there was a slight dip in May 2022 when BVPS decreased from $8.95 in 2021 to $8.17. Despite this, the overall upward trajectory suggests improvement in the company’s net asset value on a per-share basis.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio increased significantly from 8.93 in May 2019 to 17.62 in May 2024. This rising trend indicates that the market valuation of the company’s shares has been growing at a pace much faster than the book value per share. The sharp increase, particularly in the latest year, may reflect heightened investor expectations about future earnings growth or intangibles not captured in accounting book value.