CTASNEUTRAL

CTAS EV/EBITDA Analysis

28.1x

Updated 81h ago·SEC filings & market data

Key Takeaway

Enterprise value-to-EBITDA (EV/EBITDA) measures a company’s total value, including debt, relative to its cash earnings; CTAS’s 27.2x means investors pay $27.20 for every $1 of operating profit.

Sector Performance

87th percentile

CTAS

28.1x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

27.2x(Aug 2026)

↓ Declining

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Deep Analysis

Enterprise value-to-EBITDA (EV/EBITDA) measures a company’s total value, including debt, relative to its cash earnings; CTAS’s 27.2x means investors pay $27.20 for every $1 of operating profit.

That is roughly double the sector median of 13.6x, placing CTAS in the 86th percentile among peers — a high valuation. The metric is stable over the last eight quarters, with the year-over-year change not available and a quarter-over-quarter decline of 2.5%, moving from 27.9x to 27.2x. A high but stable multiple suggests the market consistently expects strong performance, yet the elevated level leaves little room for error. For a non-expert, this is a neutral-to-cautious signal: the business is priced for quality, but any shortfall could hit the valuation hard. This metric contradicts a bullish stance but does not fully support a bearish one, so it aligns with the overall NEUTRAL verdict.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CTAS?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are CTAS's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.