Cintas Corp (CTAS) is overvalued and Rentokil Initial Plc ADR (RTO) is slightly undervalued.
Against our estimates of intrinsic value, RTO trades at the wider discount: a margin of safety of +19%, against -112% for CTAS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $93.81; the price of $198.80 is 112% above that value, and 74% of that value comes from beyond year five.
Leak Score 67/100 on 10 of 12 signals
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $26.50; the price of $21.37 is 19% below that value, and 79% of that value comes from beyond year five.
Leak Score 35/100 on 3 of 12 signals
| Metric | CTAS | RTO |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $198.80 | $21.37 |
| Intrinsic value | $93.81 | $26.50 |
| Margin of safety | -112% | +19% |
| Leak Score | 67/100 (10/12) | 35/100 (3/12) |
| Market cap | $79.7B | $10.7B |
| Revenue growth, 5 years | 9.6% | 14.1% |
| Operating margin | 23.3% | 13.9% |
| Net margin | 17.7% | 6.7% |
| Return on equity | 40.6% | 6.0% |
| Debt to equity | 0.53 | 1.10 |
| P/E | 40.5x | 22.7x |
| Forward P/E | 32.4x | 13.8x |
| P/B | 15.5x | 1.9x |
| Dividend yield | 0.9% | 3.0% |