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Cincinnati Financial (BSP:CINF34) Cyclically Adjusted PB Ratio : 1.90 (As of May. 27, 2024)


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What is Cincinnati Financial Cyclically Adjusted PB Ratio?

As of today (2024-05-27), Cincinnati Financial's current share price is R$298.50. Cincinnati Financial's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was R$157.51. Cincinnati Financial's Cyclically Adjusted PB Ratio for today is 1.90.

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

BSP:CINF34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.13   Med: 1.85   Max: 2.77
Current: 1.8

During the past years, Cincinnati Financial's highest Cyclically Adjusted PB Ratio was 2.77. The lowest was 1.13. And the median was 1.85.

BSP:CINF34's Cyclically Adjusted PB Ratio is ranked worse than
73.32% of 416 companies
in the Insurance industry
Industry Median: 1.17 vs BSP:CINF34: 1.80

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Cincinnati Financial's adjusted book value per share data for the three months ended in Mar. 2024 was R$201.324. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$157.51 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cincinnati Financial Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Cincinnati Financial's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Cincinnati Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.43 1.90 2.14 1.73 1.63

Cincinnati Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB 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 1.84 1.57 1.62 1.63 1.90

Competitive Comparison of Cincinnati Financial's Cyclically Adjusted PB Ratio

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

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

* The bar in red indicates where Cincinnati Financial's Cyclically Adjusted PB Ratio falls into.



Cincinnati Financial Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Cincinnati Financial's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=298.50/157.51
=1.90

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Cincinnati Financial's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=201.324/131.7762*131.7762
=201.324

Current CPI (Mar. 2024) = 131.7762.

Cincinnati Financial Quarterly Data

Book Value per Share CPI Adj_Book
201406 43.241 100.560 56.664
201409 45.725 100.428 59.998
201412 53.040 99.070 70.550
201503 63.172 99.621 83.562
201506 61.636 100.684 80.670
201509 75.657 100.392 99.309
201512 76.089 99.792 100.476
201603 75.748 100.470 99.350
201606 72.537 101.688 94.000
201609 70.328 101.861 90.982
201612 72.017 101.863 93.166
201703 68.934 102.862 88.311
201706 74.121 103.349 94.509
201709 71.847 104.136 90.917
201712 82.857 104.011 104.975
201803 79.387 105.290 99.358
201806 91.793 106.317 113.774
201809 105.230 106.507 130.197
201812 93.423 105.998 116.143
201903 101.548 107.251 124.770
201906 107.797 108.070 131.444
201909 118.127 108.329 143.694
201912 124.269 108.420 151.039
202003 122.185 108.902 147.850
202006 149.360 108.767 180.956
202009 163.629 109.815 196.352
202012 172.487 109.897 206.828
202103 194.918 111.754 229.839
202106 185.065 114.631 212.744
202109 194.006 115.734 220.897
202112 231.152 117.630 258.951
202203 187.694 121.301 203.903
202206 167.300 125.017 176.346
202209 157.391 125.227 165.623
202212 176.327 125.222 185.556
202303 177.944 127.348 184.132
202306 170.715 128.729 174.756
202309 167.204 129.860 169.672
202312 188.783 129.419 192.221
202403 201.324 131.776 201.324

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

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) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Cincinnati Financial Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Cincinnati Financial's Cyclically Adjusted PB 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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