Is Cincinnati Financial Corp. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Cincinnati Financial Corp. has moved from fair to expensive. The company is currently overvalued based on its key financial ratios, including a P/E ratio of 20, a Price to Book Value of 2.13, and an EV to EBITDA of 188.24. Compared to peers, Unum Group is rated attractive with a P/E of 13.72, while Reinsurance Group of America, Inc. is considered expensive with a P/E of 20.61.
Cincinnati Financial Corp.'s valuation appears stretched, especially when juxtaposed with its peers, indicating that the market may be pricing in overly optimistic growth expectations. While the company has outperformed the S&P 500 over the past year with a return of 27.80% compared to 10.26%, this performance does not justify its current valuation metrics, reinforcing the conclusion that it is overvalued.