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GuruFocus has detected 4 Warning Signs with Cincinnati Financial Corp $CINF.
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Cincinnati Financial Corp (NAS:CINF)
EV-to-EBIT
13.89 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Cincinnati Financial Corp's enterprise value is $12,018 Mil. Cincinnati Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $865 Mil. Therefore, Cincinnati Financial Corp's EV/EBIT ratio for today is 13.89.

CINF' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.6   Max: 27.9
Current: 13.87

4.6
27.9

During the past 13 years, the highest EV/EBIT Ratio of Cincinnati Financial Corp was 27.90. The lowest was 4.60. And the median was 10.40.

CINF's EV-to-EBIT is ranked lower than
72% of the 166 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.90 vs. CINF: 13.87 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cincinnati Financial Corp's enterprise value for the quarter that ended in Dec. 2016 was $12,549 Mil. Cincinnati Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $865 Mil. Cincinnati Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.89%.


Definition

Cincinnati Financial Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=12018.140/865
=13.89

Cincinnati Financial Corp's current Enterprise Value is $12,018 Mil.
Cincinnati Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 278 (Mar. 2016 ) + 179 (Jun. 2016 ) + 266 (Sep. 2016 ) + 142 (Dec. 2016 ) = $865 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Cincinnati Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=865/12548.8125
=6.89 %

Cincinnati Financial Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $12,549 Mil.
Cincinnati Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 278 (Mar. 2016 ) + 179 (Jun. 2016 ) + 266 (Sep. 2016 ) + 142 (Dec. 2016 ) = $865 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cincinnati Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 5.707.537.1010.1523.8811.0114.1611.3210.7214.51

Cincinnati Financial Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 11.5211.3210.828.819.6210.7210.7213.3913.2014.51
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