Cincinnati Financial Price To Sales vs. Return On Equity
| CINF Stock | USD 156.47 1.62 1.05% |
For Cincinnati Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cincinnati Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cincinnati Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cincinnati Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cincinnati Financial over time as well as its relative position and ranking within its peers.
Cincinnati |
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cincinnati Financial. If investors know Cincinnati will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cincinnati Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cincinnati Financial is measured differently than its book value, which is the value of Cincinnati that is recorded on the company's balance sheet. Investors also form their own opinion of Cincinnati Financial's value that differs from its market value or its book value, called intrinsic value, which is Cincinnati Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cincinnati Financial's market value can be influenced by many factors that don't directly affect Cincinnati Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cincinnati Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cincinnati Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cincinnati Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Cincinnati Financial Return On Equity vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cincinnati Financial's current stock value. Our valuation model uses many indicators to compare Cincinnati Financial value to that of its competitors to determine the firm's financial worth. Cincinnati Financial is rated third in price to sales category among its peers. It is rated second in return on equity category among its peers reporting about 0.12 of Return On Equity per Price To Sales. The ratio of Price To Sales to Return On Equity for Cincinnati Financial is roughly 8.00 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Cincinnati Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Cincinnati Return On Equity vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Cincinnati Financial |
| = | 2.01 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Cincinnati Financial |
| = | 0.25 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cincinnati Return On Equity Comparison
Cincinnati Financial is currently under evaluation in return on equity category among its peers.
Cincinnati Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cincinnati Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cincinnati Financial will eventually generate negative long term returns. The profitability progress is the general direction of Cincinnati Financial's change in net profit over the period of time. It can combine multiple indicators of Cincinnati Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio. Cincinnati Financial operates under InsuranceProperty Casualty classification in the United States and is traded on NASDAQ Exchange. It employs 5166 people.
Cincinnati Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cincinnati Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cincinnati Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cincinnati Financial's important profitability drivers and their relationship over time.
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Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 243 constituents at this time.
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Check out Trending Equities. For more detail on how to invest in Cincinnati Stock please use our How to Invest in Cincinnati Financial guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Cincinnati Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cincinnati Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cincinnati Financial's income statement, its balance sheet, and the statement of cash flows.