AFG

American Financial Group, Inc.

Fundamental data last updated:September 7, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Property & Casualty

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

American Financial Group, Inc., an insurance holding company, provides specialty property and casualty insurance products in the United States. It offers property and transportation insurance products, such as physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products, and other commercial property and specialty transportation coverages; specialty casualty insurance, including primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers' compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, fidelity and surety products, and trade credit insurance. The company sells its property and casualty insurance products through independent insurance agents and brokers. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio.

 


VALUATION

P/E

12.40

Market Cap ($M USD)

$10.87B

Forward P/E

10.34

PEG

0.52

PRICE TO SALES

1.33

PRICE TO BOOK

2.33

EV / EBITDA

8.98

5-Year Average P/E

Free Cash Flow Yield

14.45%

DCF Value

$382.72

Graham Number

$115.47

Price to FCF

6.92

EV to FCF

7.22

Earnings Yield

8.07%

FCF Yield

14.45%

DIVIDEND

Yield

5.30%

Annual Payout

$6.94

Payout Ratio

64.96%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$10.55

Next Year EPS Growth Estimate

$12.65

Next Year Revenue Growth Estimate

$8.53B

Return on Equity (ROE)

18.76%

FREE CASH FLOW

Operating Margin

13.68%

Debt-to-Equity

0.38

Piotroski F-Score

6

Altman Z-Score

1.10

Return on Invested Capital (ROIC)

4.32%

Current Ratio

0.00

Quick Ratio

0.00

Net Debt to EBITDA

0.37

Interest Coverage

13.27

Gross Profit margin

32.36%

FCF PER SHARE

$18.86

REVENUE PER SHARE

$97.85

Gainseekers Quantitative Analysis

Summary

AFG’s valuation presents a compelling opportunity for deep value investors. The stock has traded significantly below its DCF Value, suggesting a market mispricing. With a Forward P/E of 10.38 and an Earnings Yield of 8.04%, the company appears undervalued relative to its earnings potential. However, the Altman Z-score of 0.84 raises red flags about financial distress, indicating potential risks. Despite this, the low PEG ratio of 0.52 suggests strong growth prospects at a reasonable price.

AI Exposure / Tech Reliance

Operating within the insurance sector, AFG is moderately insulated from rapid tech disruptions. While not a tech-centric company, its industry can leverage AI for risk assessment and customer service enhancements. This adaptability could provide a competitive edge in efficiency and customer engagement.

The Bull Case

For the discerning GARP investor, AFG offers attractive institutional tailwinds. The company boasts a robust ROIC of 3.45% and a healthy FCF Yield of 14.55%, indicating efficient capital use and strong cash generation. A Piotroski F-Score of 6 and solid operating margins of 13.68% further underscore its operational strength. These metrics suggest AFG has the pricing power and capital efficiency to deliver consistent returns.

The Bear Case

Despite its strengths, AFG faces structural risks that cannot be ignored. The Price/Book ratio of 2.34 and Price/Sales ratio of 1.34 suggest the stock might be overvalued relative to its book and sales values. Additionally, the Altman Z-score indicates potential financial distress, and the stock's proximity to its 52-week high could signal technical overextension. Investors should be wary of these valuation and risk factors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$152.50

Institutional Ownership %

1-Year Beta

0.64

Insider Buying % (6 Mo)

Distance to 52-Week High

14.68%

Distance to 52-Week Low

6.93%

EARNINGS SURPRISE %

-3.14%

50-DAY SMA

$131.05

200-DAY SMA

$134.07

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.