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Cincinnati Financial (BSP:CINF34) Shiller PE Ratio : 16.54 (As of Apr. 25, 2024)


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What is Cincinnati Financial Shiller PE Ratio?

As of today (2024-04-25), Cincinnati Financial's current share price is R$298.50. Cincinnati Financial's E10 for the quarter that ended in Dec. 2023 was R$18.05. Cincinnati Financial's Shiller PE Ratio for today is 16.54.

The historical rank and industry rank for Cincinnati Financial's Shiller PE Ratio or its related term are showing as below:

BSP:CINF34' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.06   Med: 18.91   Max: 29.35
Current: 15.84

During the past years, Cincinnati Financial's highest Shiller PE Ratio was 29.35. The lowest was 13.06. And the median was 18.91.

BSP:CINF34's Shiller PE Ratio is ranked worse than
59.22% of 358 companies
in the Insurance industry
Industry Median: 13.36 vs BSP:CINF34: 15.84

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Cincinnati Financial's adjusted earnings per share data for the three months ended in Dec. 2023 was R$18.374. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is R$18.05 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cincinnati Financial Shiller PE Ratio Historical Data

The historical data trend for Cincinnati Financial's Shiller PE Ratio 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.

* Premium members only.

Cincinnati Financial Shiller PE Ratio Chart

Cincinnati Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.99 18.42 16.77 15.53 13.66

Cincinnati Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.53 16.67 13.81 14.73 13.66

Competitive Comparison of Cincinnati Financial's Shiller PE Ratio

For the Insurance - Property & Casualty subindustry, Cincinnati Financial's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Cincinnati Financial's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Cincinnati Financial's Shiller PE Ratio falls into.



Cincinnati Financial Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Cincinnati Financial's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=298.50/18.05
=16.54

* 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's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Cincinnati Financial's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=18.374/129.4194*129.4194
=18.374

Current CPI (Dec. 2023) = 129.4194.

Cincinnati Financial Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.639 99.695 0.830
201406 0.570 100.560 0.734
201409 1.298 100.428 1.673
201412 1.347 99.070 1.760
201503 1.209 99.621 1.571
201506 1.649 100.684 2.120
201509 2.049 100.392 2.641
201512 1.824 99.792 2.366
201603 2.089 100.470 2.691
201606 1.267 101.688 1.613
201609 1.757 101.861 2.232
201612 1.006 101.863 1.278
201703 1.892 102.862 2.380
201706 0.989 103.349 1.238
201709 0.955 104.136 1.187
201712 6.392 104.011 7.953
201803 -0.312 105.290 -0.384
201806 2.489 106.317 3.030
201809 6.944 106.507 8.438
201812 -5.398 105.998 -6.591
201903 8.104 107.251 9.779
201906 4.993 108.070 5.979
201909 3.069 108.329 3.666
201912 7.778 108.420 9.284
202003 -18.470 108.902 -21.950
202006 14.605 108.767 17.378
202009 8.073 109.815 9.514
202012 16.643 109.897 19.600
202103 10.763 111.754 12.464
202106 10.836 114.631 12.234
202109 2.481 115.734 2.774
202112 25.560 117.630 28.122
202203 -4.130 121.301 -4.406
202206 -12.922 125.017 -13.377
202209 -6.895 125.227 -7.126
202212 16.785 125.222 17.348
202303 3.698 127.348 3.758
202306 8.203 128.729 8.247
202309 -1.556 129.860 -1.551
202312 18.374 129.419 18.374

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Cincinnati Financial  (BSP:CINF34) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Cincinnati Financial Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Cincinnati Financial's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Cincinnati Financial (BSP:CINF34) Business Description

Traded in Other Exchanges
Address
6200 S. Gilmore Road, Fairfield, OH, USA, 45014-5141
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.

Cincinnati Financial (BSP:CINF34) Headlines

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