American Financial Group AFG
United StatesFinancial Services · Insurance - Property & CasualtyUSD
155.83 USD (+12.1%)
6 analysts
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American Financial Group is a U.S. insurer specializing in property and casualty insurance, offering commercial and personal coverage through its subsidiaries.
Key points
from its scores- ✓Favourable backdrop7.6
- ✓Strong growth7.3
- ✓Very solid balance sheet7.0
- !Weak share-price trend5.6
- !Somewhat demanding valuation5.8
AI analysis
bottom line, main risk, context and newsThe company has solid fundamentals but no news to drive an immediate re-rating.
American Financial Group shows solid financial health with an ROE of 20.41% and earnings growth of 44.30%, although its valuation (P/E 12.15) and operating margin (17.24%) are in line with the sector, with no clear catalysts.
The main risk is exposure to catastrophic claims and regulatory pressure on rates in the U.S. property and casualty insurance sector.
Context and risks
American Financial Group operates in the property and casualty insurance sector in the United States, a market with active state regulatory oversight and risk of litigation from claims. The country's governance is solid, but the sector is subject to rate reviews and capital requirements that can affect profitability.
Is American Financial Group stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades in line with the Financial Services median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.2 | 13.7 | −11% |
| EV / EBITDA | 8.5 | 10.1 | −15% |
| Price / book | 2.4 | 1.9 | +29% |
| Price / sales | 1.4 | 3.5 | −59% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.8 out of 10 (median for Financial Services: 5.2).
Average analyst target: 155.83 USD, +12.1% versus the price.
Classic formulas with standard assumptions (5.7% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 12.2
- Forward P/E
- 11.5
- EV / EBITDA
- 8.5
- Price / book
- 2.4
- Price / sales
- 1.4
- PEG
- 2.30
- Market cap
- 11.5B USD
- Enterprise value
- 12.0B USD
Profitability
- ROE
- 20.4%
- ROA
- 2.6%
- ROIC (approx.)
- 20.3%
- Gross margin
- 20.2%
- Operating margin
- 17.2%
- Net margin
- 11.8%
- Free cash flow
- 142.2M USD
- FCF yield
- 1.2%
- Cash conversion
- 10%
Solvency
- Total debt
- 2.0B USD
- Net debt
- 518.0M USD
- Cash
- 1.5B USD
- EBITDA
- 1.4B USD
- Net debt / EBITDA
- 0.37
- Debt / equity
- 42.23
- Current ratio
- 2.08
- Quick ratio
- 0.86
Growth
- Revenue growth
- +5.8%
- Earnings growth
- +44.3%
- EPS (TTM)
- 11.44 USD
- EPS (forward)
- 12.10 USD
Dividend
- Dividend yield
- 2.8%
- Payout
- 30.1%
Risk and market
- Beta
- 0.58
- Analyst consensus
- Buy (6)
- Target price
- 155.83 USD
- 52-week range
- 123.09 – 148.71
Recent news
All AFG news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about American Financial Group
Is American Financial Group stock cheap or expensive?
On P/E and Price / book, it trades in line with the Financial Services median (within 15%). Valuation score: 5.8 out of 10 (median for Financial Services: 5.2). Average analyst target: 155.83 USD, +12.1% versus the price. This is not investment advice.
What score does American Financial Group get on MeridIAn Screener?
It scores 6.7 out of 10, rank 362 of 2,130 (better than 80% of the companies analysed). Its strongest category is Risk & Context (7.6) and its weakest, Momentum (5.6). Analysis of 08/10/2026.
What is American Financial Group's P/E ratio?
Its P/E is 12.2: the share price equals 12.2 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 11.5.
How much is American Financial Group worth on the stock market?
Its market capitalisation is 11.5B USD.
Does American Financial Group pay a dividend?
Yes: its dividend yield is 2.79% and it pays out 30% of its earnings.
How has American Financial Group stock performed over the last year?
It has risen 6.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 123.09 and 148.71 USD. Past performance does not guarantee future results.
What do analysts think of American Financial Group?
6 analysts cover it; their average recommendation is “Buy” and their average target is 155.83 USD (+12.1% versus the price). It is an estimate, not market data.