Is Cintas Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Cintas Corp. has moved from fair to very expensive, indicating that the stock is overvalued. Key ratios support this assessment, with a P/E ratio of 63, a Price to Book Value of 24.32, and an EV to EBITDA of 40.75, all significantly higher than its peers. For comparison, Booking Holdings, Inc. has a P/E of 57.33 and an EV to EBITDA of 33.73, while Airbnb, Inc. shows a more reasonable P/E of 29.31 and an EV to EBITDA of 25.36.
In the context of recent performance, Cintas Corp. has underperformed relative to the S&P 500 over the past year, with a return of -0.93% compared to the index's 17.14%. This trend, combined with the high valuation ratios, reinforces the conclusion that Cintas Corp. is currently overvalued.