The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Cincinnati Financial Corporation (NasdaqGS:CINF) is 8283. The lower the ERP5 rank, the more undervalued a company is thought to be.
Because there are so many stocks to choose from, it may not be feasible for investors to be able to research all of them. Investors may have many different preferred methods for screening stocks, and it can sometimes be easier to focus on a small number of stocks at first. There is no shortage of stock picking ideas that come from various outlets across the globe. Certain stocks tend to become household names simply because of the amount of coverage that they get from the media. There are many unglamorous stocks that might be a good fit for the portfolio. Taking the time to branch out into previously non-researched sectors may give the investor some new ideas for portfolio additions in the future.
The Q.i. Value of Cincinnati Financial Corporation (NasdaqGS:CINF) is 21.00000. The Q.i. Value is another helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.
The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Cincinnati Financial Corporation (NasdaqGS:CINF) is 0.085529.
The Earnings to Price yield of Cincinnati Financial Corporation (NasdaqGS:CINF) is 0.110137. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for Cincinnati Financial Corporation (NasdaqGS:CINF) is 0.080827. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for Cincinnati Financial Corporation is 0.049600.
The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Cincinnati Financial Corporation (NasdaqGS:CINF) is 0.053422.
We can now take a quick look at some historical stock price index data. Cincinnati Financial Corporation (NasdaqGS:CINF) presently has a 10 month price index of 1.05223. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.06943, the 24 month is 1.16822, and the 36 month is 1.48552. Narrowing in a bit closer, the 5 month price index is 1.05998, the 3 month is 1.07258, and the 1 month is currently 0.97328.
Looking at some ROIC (Return on Invested Capital) numbers, Cincinnati Financial Corporation (NasdaqGS:CINF)’s ROIC is 0.056654. The ROIC 5 year average is 0.044487 and the ROIC Quality ratio is 3.064147. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
Cincinnati Financial Corporation (NasdaqGS:CINF) has a Price to Book ratio of 1.504552. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 11.076802, and a current Price to Earnings ratio of 9.079609. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
Cincinnati Financial Corporation (NasdaqGS:CINF) presently has a current ratio of 1.14. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.
The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Cincinnati Financial Corporation NasdaqGS:CINF is 1.504552. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Cincinnati Financial Corporation (NasdaqGS:CINF) is 11.076802. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Cincinnati Financial Corporation (NasdaqGS:CINF) is 9.079609. This ratio is found by taking the current share price and dividing by earnings per share.
Once the individual investor has figured out a plan to analyze stocks, they can begin to start building a portfolio. Because not everyone has the same goals, time horizons, and risk appetites, it is hard to provide one answer to the question of how to construct the perfect winning stock portfolio. Although every investor’s goal is typically to beat the market and secure consistent profits, this is no easy accomplishment. Professionals have spent many years studying the ins and outs of the stock market. There are certain strategies that may work better during different market cycles, but it is hard to say with any certainty that they will continue to work in the future. Markets and economic landscapes are constantly changing, and being able to keep up with the changes might involve tweaking strategies that have previously been successful but no longer are.