This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Cincinnati Financial's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $63.435. Cincinnati Financial's 10-Year median PS Ratio is 2.1245. Therefore, the Median PS Value for today is $134.77.
As of today (2024-04-25), Cincinnati Financial's share price is $119.445. Cincinnati Financial's Median PS Value is $134.77. Therefore, Cincinnati Financial's Price to Median PS Value for today is 0.89.
The historical rank and industry rank for Cincinnati Financial's Median PS Value or its related term are showing as below:
CINF'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.77 Med: 1.18 Max: 1.42
Current: 0.89
During the past 13 years, the highest Price to Median PS Value of Cincinnati Financial was 1.42. The lowest was 0.77. And the median was 1.18.
CINF's Price-to-Median-PS-Value is ranked better than 57.1% of 303
companies
in the Insurance industry
Industry Median: 0.97
vs CINF: 0.89
Cincinnati Financial Median PS Value Historical Data
The historical data trend for Cincinnati Financial's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cincinnati Financial's Median PS Value
For the Insurance - Property & Casualty subindustry, Cincinnati Financial's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cincinnati Financial's Price-to-Median-PS-Value Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Cincinnati Financial's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Cincinnati Financial's Price-to-Median-PS-Value falls into.
Cincinnati Financial Median PS Value Calculation
Cincinnati Financial's Median PS Value for today is calculated as
10-Year Median PS Ratio is 2.1245.
Cincinnati Financial's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $63.435.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cincinnati Financial (NAS:CINF) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Cincinnati Financial's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
119.445
/
134.77
=
0.89
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cincinnati Financial Median PS Value Related Terms
Thank you for viewing the detailed overview of Cincinnati Financial's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Cincinnati Financial (Cincinnati Financial) Business Description
Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The company operates in segments: Commercial lines insurance, Personal lines insurance, and Excess and surplus lines insurance, Life insurance, and Investments. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.
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