Cincinnati Financial Corporation

NasdaqGS:CINF Stock Report

Mkt Cap: US$16.1b

Cincinnati Financial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CINF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA7.2x
PEG Ratio-0.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.8x
L Loews
10.1xn/aUS$15.5b
ERIE Erie Indemnity
38.2x18.7%US$15.3b
FNF Fidelity National Financial
28.9x43.3%US$12.2b
MKL Markel Group
10.1x-0.5%US$19.1b
CINF Cincinnati Financial
9.6x-14.0%US$16.1b

Price-To-Earnings vs Peers: CINF is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CINF is good value based on its Price-To-Earnings Ratio (9.6x) compared to the US Insurance industry average (12.6x).


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 Ratio9.6x
Fair PE Ratio8.4x

Price-To-Earnings vs Fair Ratio: CINF is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.4x).


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 ($102.68) is trading below our estimate of fair value ($119.76)

Significantly Below Fair Value: CINF is trading below fair value, but not by a significant amount.


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$102.68
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$110.00n/a5
Oct ’24US$102.29
US$120.80
+18.1%
5.3%US$130.00US$115.00n/a5
Sep ’24US$106.48
US$120.80
+13.4%
5.3%US$130.00US$115.00n/a5
Aug ’24US$108.41
US$120.80
+11.4%
5.3%US$130.00US$115.00n/a5
Jul ’24US$97.32
US$120.50
+23.8%
4.8%US$130.00US$115.00n/a4
Jun ’24US$97.15
US$120.00
+23.5%
4.4%US$130.00US$115.00n/a5
May ’24US$105.33
US$116.50
+10.6%
6.2%US$130.00US$106.00n/a6
Apr ’24US$112.08
US$120.17
+7.2%
6.9%US$130.00US$106.00n/a6
Mar ’24US$119.92
US$120.17
+0.2%
6.9%US$130.00US$106.00n/a6
Feb ’24US$114.31
US$111.33
-2.6%
8.5%US$130.00US$100.00n/a6
Jan ’24US$102.39
US$108.60
+6.1%
10.5%US$130.00US$98.00n/a5
Dec ’23US$111.12
US$106.60
-4.1%
7.3%US$120.00US$98.00n/a5
Nov ’23US$99.22
US$106.60
+7.4%
7.3%US$120.00US$98.00US$101.935
Oct ’23US$89.57
US$106.60
+19.0%
12.0%US$130.00US$92.00US$102.295
Sep ’23US$97.72
US$110.25
+12.8%
10.6%US$130.00US$101.00US$106.484
Aug ’23US$94.89
US$110.25
+16.2%
10.6%US$130.00US$101.00US$108.414
Jul ’23US$120.36
US$140.00
+16.3%
8.3%US$160.00US$132.00US$97.324
Jun ’23US$126.11
US$137.80
+9.3%
8.2%US$160.00US$129.00US$97.155
May ’23US$122.66
US$139.80
+14.0%
7.4%US$160.00US$132.00US$105.335
Apr ’23US$138.07
US$136.80
-0.9%
5.6%US$150.00US$127.00US$112.085
Mar ’23US$120.05
US$139.20
+16.0%
6.9%US$151.00US$127.00US$119.925
Feb ’23US$118.32
US$134.00
+13.3%
7.7%US$151.00US$122.00US$114.315
Jan ’23US$113.93
US$134.80
+18.3%
7.0%US$151.00US$126.00US$102.395
Dec ’22US$112.85
US$135.80
+20.3%
6.8%US$151.00US$126.00US$111.125
Nov ’22US$120.49
US$135.20
+12.2%
6.1%US$148.00US$126.00US$99.225

Analyst Forecast: Target price is less than 20% higher than the current share price.


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