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Cincinnati Financial (FRA:CCJ) Cyclically Adjusted PS Ratio : 2.26 (As of Jun. 08, 2024)


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What is Cincinnati Financial Cyclically Adjusted PS Ratio?

As of today (2024-06-08), Cincinnati Financial's current share price is €105.30. Cincinnati Financial's Cyclically Adjusted Revenue per Share for the quarter that ended in Mar. 2024 was €46.51. Cincinnati Financial's Cyclically Adjusted PS Ratio for today is 2.26.

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

FRA:CCJ' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.51   Med: 2.43   Max: 3.6
Current: 2.28

During the past years, Cincinnati Financial's highest Cyclically Adjusted PS Ratio was 3.60. The lowest was 1.51. And the median was 2.43.

FRA:CCJ's Cyclically Adjusted PS Ratio is ranked worse than
82.56% of 407 companies
in the Insurance industry
Industry Median: 0.97 vs FRA:CCJ: 2.28

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Cincinnati Financial's adjusted revenue per share data for the three months ended in Mar. 2024 was €17.101. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €46.51 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cincinnati Financial Cyclically Adjusted PS Ratio Historical Data

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

Cincinnati Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.18 2.46 2.77 2.29 2.11

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 PS 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 2.44 2.06 2.13 2.11 2.44

Competitive Comparison of Cincinnati Financial's Cyclically Adjusted PS Ratio

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

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

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



Cincinnati Financial Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=105.30/46.51
=2.26

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=17.101/131.7762*131.7762
=17.101

Current CPI (Mar. 2024) = 131.7762.

Cincinnati Financial Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201406 5.412 100.560 7.092
201409 6.020 100.428 7.899
201412 6.188 99.070 8.231
201503 7.170 99.621 9.484
201506 7.085 100.684 9.273
201509 6.880 100.392 9.031
201512 6.989 99.792 9.229
201603 7.379 100.470 9.678
201606 7.328 101.688 9.496
201609 7.489 101.861 9.688
201612 7.470 101.863 9.664
201703 8.553 102.862 10.957
201706 7.431 103.349 9.475
201709 7.141 104.136 9.036
201712 7.196 104.011 9.117
201803 6.053 105.290 7.576
201806 8.107 106.317 10.048
201809 10.007 106.507 12.381
201812 3.808 105.998 4.734
201903 11.608 107.251 14.262
201906 10.248 108.070 12.496
201909 9.321 108.329 11.338
201912 11.731 108.420 14.258
202003 -0.552 108.902 -0.668
202006 14.923 108.767 18.080
202009 11.671 109.815 14.005
202012 13.661 109.897 16.381
202103 11.512 111.754 13.574
202106 11.693 114.631 13.442
202109 9.314 115.734 10.605
202112 18.087 117.630 20.262
202203 6.895 121.301 7.490
202206 4.860 125.017 5.123
202209 9.013 125.227 9.484
202212 18.694 125.222 19.672
202303 13.206 127.348 13.665
202306 15.218 128.729 15.578
202309 10.815 129.860 10.975
202312 19.502 129.419 19.857
202403 17.101 131.776 17.101

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Cincinnati Financial Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Cincinnati Financial's Cyclically Adjusted PS Ratio 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.