Cincinnati Financial Corporation

NasdaqGS:CINF Stock Report

Market Cap: US$23.7b

Cincinnati Financial Valuation

Is CINF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CINF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CINF ($154.85) is trading above our estimate of fair value ($154.73)

Significantly Below Fair Value: CINF is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CINF?

Key metric: As CINF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CINF. This is calculated by dividing CINF's market cap by their current earnings.
What is CINF's PE Ratio?
PE Ratio7.9x
EarningsUS$3.07b
Market CapUS$23.70b

Price to Earnings Ratio vs Peers

How does CINF's PE Ratio compare to its peers?

The above table shows the PE ratio for CINF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
WRB W. R. Berkley
15x4.4%US$23.2b
ERIE Erie Indemnity
39.7x23.8%US$21.9b
MKL Markel Group
7.8x-15.5%US$21.8b
L Loews
11.1xn/aUS$18.4b
CINF Cincinnati Financial
7.9x-38.3%US$23.7b

Price-To-Earnings vs Peers: CINF is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does CINF's PE Ratio compare vs other companies in the US Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.45m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
CINF 7.9xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CINF is good value based on its Price-To-Earnings Ratio (7.9x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is CINF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CINF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio6.7x

Price-To-Earnings vs Fair Ratio: CINF is expensive based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CINF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$154.85
US$152.33
-1.6%
9.1%US$171.00US$126.00n/a6
Nov ’25US$140.65
US$147.00
+4.5%
11.1%US$171.00US$126.00n/a6
Oct ’25US$137.28
US$136.50
-0.6%
8.9%US$150.00US$116.00n/a6
Sep ’25US$137.03
US$137.00
-0.02%
8.2%US$150.00US$116.00n/a7
Aug ’25US$129.94
US$137.29
+5.7%
8.5%US$151.00US$116.00n/a7
Jul ’25US$119.19
US$130.86
+9.8%
7.8%US$143.00US$116.00n/a7
Jun ’25US$117.58
US$129.57
+10.2%
7.8%US$143.00US$116.00n/a7
May ’25US$117.30
US$129.57
+10.5%
7.8%US$143.00US$116.00n/a7
Apr ’25US$122.17
US$126.29
+3.4%
7.4%US$136.00US$112.00n/a7
Mar ’25US$113.54
US$123.71
+9.0%
6.1%US$135.00US$112.00n/a7
Feb ’25US$110.57
US$119.86
+8.4%
6.9%US$130.00US$110.00n/a7
Jan ’25US$103.46
US$116.88
+13.0%
6.4%US$130.00US$110.00n/a8
Dec ’24US$102.65
US$117.86
+14.8%
6.4%US$130.00US$110.00n/a7
Nov ’24US$101.93
US$119.60
+17.3%
6.1%US$130.00US$110.00US$140.655
Oct ’24US$102.29
US$122.80
+20.1%
4.7%US$130.00US$115.00US$137.285
Sep ’24US$106.48
US$122.80
+15.3%
4.7%US$130.00US$115.00US$137.035
Aug ’24US$108.41
US$120.80
+11.4%
5.3%US$130.00US$115.00US$129.945
Jul ’24US$97.32
US$120.50
+23.8%
4.8%US$130.00US$115.00US$119.194
Jun ’24US$97.15
US$120.00
+23.5%
4.4%US$130.00US$115.00US$117.585
May ’24US$105.33
US$116.50
+10.6%
6.2%US$130.00US$106.00US$117.306
Apr ’24US$112.08
US$120.17
+7.2%
6.9%US$130.00US$106.00US$122.176
Mar ’24US$119.92
US$120.17
+0.2%
6.9%US$130.00US$106.00US$113.546
Feb ’24US$114.31
US$111.33
-2.6%
8.5%US$130.00US$100.00US$110.576
Jan ’24US$102.39
US$108.60
+6.1%
10.5%US$130.00US$98.00US$103.465
Dec ’23US$111.12
US$106.60
-4.1%
7.3%US$120.00US$98.00US$102.655
Nov ’23US$99.22
US$106.60
+7.4%
7.3%US$120.00US$98.00US$101.935

Analyst Forecast: Target price is lower than the current share price.

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