Cincinnati Financial Corporation (CINF) Company Bio
Cincinnati Financial offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The company was founded in 1950 and is based in Fairfield, Ohio.
CINF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cincinnati Financial Corp. To summarize, we found that Cincinnati Financial Corp ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CINF, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 91. Notably, its equity weight is greater than 81.79% of US equities in the Financial Services sector yielding a positive free cash flow.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than merely 20.22% of the free cash flow producing stocks we're observing.
Cincinnati Financial Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GDOT, WDR, CNA, CME, and SPGI can be thought of as valuation peers to CINF, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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