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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-31), Cincinnati Financial's 1-Year Sharpe Ratio is 0.92.
Cincinnati Financial (NAS:CINF) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Cincinnati Financial 1-Year Sharpe Ratio Related Terms
CINF vs WRB, MKL, L: 1-Year Sharpe Ratio Comparison
For the Insurance - Property & Casualty subindustry, Cincinnati Financial's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Cincinnati Financial's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Cincinnati Financial's 1-Year Sharpe Ratio falls into.
Cincinnati Financial 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Cincinnati Financial (CINF) has a 1-Year Sharpe Ratio of 0.92 as of Jul. 31, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Cincinnati Financial and its competitors.
Is Cincinnati Financial's 1-Year Sharpe Ratio too high?
Cincinnati Financial's current 1-Year Sharpe Ratio is 0.92. Overall, Cincinnati Financial has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cincinnati Financial's 1-Year Sharpe Ratio compare to WRB and MKL?
Cincinnati Financial's 1-Year Sharpe Ratio of 0.92 can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Insurance company?
A good 1-Year Sharpe Ratio depends on the Insurance industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Cincinnati Financial and its competitors. Cincinnati Financial's current 1-Year Sharpe Ratio is 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cincinnati Financial stock overvalued right now?
Based on GuruFocus' analysis, Cincinnati Financial (CINF) is currently considered Fairly Valued. The stock's GF Value™ is $175.54, compared to a current price of $177.73 — trading 1.2% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.92. Cincinnati Financial's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Cincinnati Financial (CINF), the current 1-Year Sharpe Ratio is 0.92 as of Jul. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cincinnati Financial (CINF) Overvalued in 2026?
Based on GuruFocus' analysis, Cincinnati Financial stock appears to be overvalued.
The current stock price of $177.73 is trading 1.2% above its estimated GF Value™ of $175.54.
GuruFocus considers Cincinnati Financial to be Fairly Valued.
Key valuation signals for CINF:
1-Year Sharpe Ratio: 0.92
GF Value™: $175.54 vs. price of $177.73 (1.2% above fair value)
No single metric tells the full story. See the CINF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, 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.
74GF Score
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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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