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Cincinnati Financial (FRA:CCJ) Cyclically Adjusted Price-to-FCF : 11.67 (As of May. 23, 2024)


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What is Cincinnati Financial Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), Cincinnati Financial's current share price is €109.10. Cincinnati Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €9.35. Cincinnati Financial's Cyclically Adjusted Price-to-FCF for today is 11.67.

The historical rank and industry rank for Cincinnati Financial's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

FRA:CCJ' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.78   Med: 14.94   Max: 21.6
Current: 11.64

During the past years, Cincinnati Financial's highest Cyclically Adjusted Price-to-FCF was 21.60. The lowest was 8.78. And the median was 14.94.

FRA:CCJ's Cyclically Adjusted Price-to-FCF is ranked worse than
51.12% of 313 companies
in the Insurance industry
Industry Median: 11.43 vs FRA:CCJ: 11.64

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Cincinnati Financial's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €2.016. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €9.35 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cincinnati Financial Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Cincinnati Financial's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Cincinnati Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.91 14.16 14.88 11.45 10.44

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 Price-to-FCF 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 12.17 10.23 10.45 10.44 12.16

Competitive Comparison of Cincinnati Financial's Cyclically Adjusted Price-to-FCF

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

For the Insurance industry and Financial Services sector, Cincinnati Financial's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Cincinnati Financial's Cyclically Adjusted Price-to-FCF falls into.



Cincinnati Financial Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

Cincinnati Financial's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=109.10/9.35
=11.67

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

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.016/131.7762*131.7762
=2.016

Current CPI (Mar. 2024) = 131.7762.

Cincinnati Financial Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.981 100.560 1.286
201409 1.322 100.428 1.735
201412 1.162 99.070 1.546
201503 1.194 99.621 1.579
201506 1.351 100.684 1.768
201509 1.524 100.392 2.000
201512 1.754 99.792 2.316
201603 1.417 100.470 1.859
201606 1.229 101.688 1.593
201609 1.784 101.861 2.308
201612 1.571 101.863 2.032
201703 0.752 102.862 0.963
201706 1.619 103.349 2.064
201709 1.497 104.136 1.894
201712 1.550 104.011 1.964
201803 0.747 105.290 0.935
201806 1.582 106.317 1.961
201809 1.866 106.507 2.309
201812 1.872 105.998 2.327
201903 1.048 107.251 1.288
201906 1.436 108.070 1.751
201909 2.166 108.329 2.635
201912 1.777 108.420 2.160
202003 0.909 108.902 1.100
202006 2.425 108.767 2.938
202009 2.615 109.815 3.138
202012 1.866 109.897 2.238
202103 1.804 111.754 2.127
202106 2.848 114.631 3.274
202109 3.120 115.734 3.552
202112 2.507 117.630 2.809
202203 1.098 121.301 1.193
202206 3.278 125.017 3.455
202209 4.232 125.227 4.453
202212 3.769 125.222 3.966
202303 1.450 127.348 1.500
202306 3.336 128.729 3.415
202309 3.870 129.860 3.927
202312 3.307 129.419 3.367
202403 2.016 131.776 2.016

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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  (FRA:CCJ) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Cincinnati Financial Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Cincinnati Financial's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Cincinnati Financial (FRA:CCJ) 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 (FRA:CCJ) Headlines

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