CTAS DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
May'20 ActualMay'21 ActualMay'22 ActualMay'23 ActualMay'24 ActualMay'25 EstimateMay'26 EstimateMay'27 EstimateMay'28 EstimateMay'29 EstimateMay'30 EstimateMay'31 EstimateMay'32 EstimateMay'33 EstimateMay'34 EstimateMay'35 Terminal
% growth
7,085.1
2.8%
7,116.3
0.4%
7,854.5
10.4%
8,815.8
12.2%
9,596.6
8.9%
10,295.9
7.3%
11,020.8
7.0%
11,770.0
6.8%
12,692.3
7.8%
13,581.0
7.0%
14,418.7
6.2%
15,188.0
5.3%
15,871.6
4.5%
16,453.7
3.7%
16,919.9
2.8%
17,258.3
2.0%
1,162.7
16.4%
1,385.5
19.5%
1,587.4
20.2%
1,802.7
20.4%
2,068.6
21.6%
2,026.7
19.7%
2,169.4
19.7%
2,316.9
19.7%
2,498.4
19.7%
2,673.4
19.7%
2,838.3
19.7%
2,989.7
19.7%
3,124.3
19.7%
3,238.9
19.7%
3,330.6
19.7%
3,397.3
19.7%
NOPAT
% effective tax rate
962.8
13.6%
1,195.3
16.8%
1,308.8
16.7%
1,435.2
16.3%
1,647.2
17.2%
1,613.9
15.7%
1,727.5
15.7%
1,844.9
15.7%
1,989.5
15.7%
2,128.8
15.7%
2,260.1
15.7%
2,380.7
15.7%
2,487.8
15.7%
2,579.1
15.7%
2,652.2
15.7%
2,705.2
15.7%
% of revenue
379.1
5.3%
385.7
5.4%
399.7
5.1%
409.2
4.6%
442.4
4.6%
492.1
4.8%
526.8
4.8%
562.6
4.8%
606.7
4.8%
649.2
4.8%
689.2
4.8%
726.0
4.8%
758.7
4.8%
786.5
4.8%
808.8
4.8%
824.9
4.8%
% of revenue
(230.3)
(3.3%)
(143.5)
(2.0%)
(240.7)
(3.1%)
(331.1)
(3.8%)
(409.5)
(4.3%)
(380.5)
(3.7%)
(407.3)
(3.7%)
(435.0)
(3.7%)
(469.1)
(3.7%)
(501.9)
(3.7%)
(532.9)
(3.7%)
(561.3)
(3.7%)
(586.6)
(3.7%)
(608.1)
(3.7%)
(625.3)
(3.7%)
(637.8)
(3.7%)
(72.0)
(1.0%)
(191.1)
(2.7%)
(217.0)
(2.8%)
(286.2)
(3.2%)
(22.3)
(0.2%)
(214.2)
(2.1%)
(229.3)
(2.1%)
(244.9)
(2.1%)
(264.0)
(2.1%)
(282.5)
(2.1%)
(300.0)
(2.1%)
(316.0)
(2.1%)
(330.2)
(2.1%)
(342.3)
(2.1%)
(352.0)
(2.1%)
(359.0)
(2.1%)
Free Cash Flow to Firm (FCFF)
% of revenue
1,039.6
14.7%
1,246.5
17.5%
1,250.9
15.9%
1,227.0
13.9%
1,657.9
17.3%
1,511.3
14.7%
1,617.7
14.7%
1,727.7
14.7%
1,863.1
14.7%
1,993.5
14.7%
2,116.5
14.7%
2,229.4
14.7%
2,329.8
14.7%
2,415.2
14.7%
2,483.7
14.7%
2,533.3
14.7%
% of FCFF used in calculation
23.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.95
0.87
0.79
0.72
0.65
0.59
0.54
0.49
0.44
0.40
Discounted FCFF (DFCFF)
335.5
1,401.5
1,360.2
1,332.9
1,296.1
1,250.5
1,197.0
1,136.8
1,071.0
1,000.8

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CTAS DCF Value

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CTAS DCF Financials

Revenue
$9,596.6M -> $16.9B 5.8% CAGR
Operating Income
$2,068.6M -> $3,330.6M 4.9% CAGR
FCFF
$1,657.9M -> $2,483.7M 4.1% CAGR

CTAS DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
$58.0
$60.0
$63.0
$66.0
$69.0
9.5%
$54.0
$56.0
$58.0
$60.0
$63.0
10.0%
$50.0
$51.0
$53.0
$55.0
$58.0
10.5%
$47.0
$48.0
$50.0
$52.0
$54.0
11.0%
$44.0
$45.0
$47.0
$48.0
$50.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
9.0%
(71.0%)
(70.0%)
(69.0%)
(67.0%)
(66.0%)
9.5%
(73.0%)
(72.0%)
(71.0%)
(70.0%)
(69.0%)
10.0%
(75.0%)
(75.0%)
(74.0%)
(73.0%)
(71.0%)
10.5%
(77.0%)
(76.0%)
(75.0%)
(74.0%)
(73.0%)
11.0%
(78.0%)
(78.0%)
(77.0%)
(76.0%)
(75.0%)

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