Cintas

Methodology

Cintas' uniform rental and facility services business generates remarkably predictable earnings with minimal cyclicality, making fair value calculations highly reliable. The recurring revenue model from route-based service contracts provides exceptional visibility into future profitability. This calculation works well given consistent earnings growth from market share gains and pricing.

Methodology

Cintas consistently commands premium PEG ratios reflecting its market leadership, operating excellence, and competitive moats from route density. The company's consistent execution and growth through all economic cycles justifies higher multiples than cyclical industrials. PEG appears expensive but reflects business quality and predictable compounding.

Methodology

Cintas pays a modest dividend making PEGY nearly identical to PEG for valuation purposes. Management prioritizes reinvestment in routes and acquisitions to strengthen market position over dividend growth. Total return focuses primarily on earnings compounding rather than income generation, with consistent share buybacks supplementing growth.