Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 10.9x · ROE 18.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.5B | $11.4B | $11.5B | $10.1B | $11.7B | $11.8B | $7.8B | $10.0B | $8.2B | $9.7B | $7.8B |
| Enterprise Value | $12.6B | $11.5B | $12.0B | $10.7B | $12.5B | $11.8B | $8.4B | $9.5B | $8.0B | $8.7B | $7.0B |
| P/E Ratio → | 14.94 | 13.56 | 12.95 | 11.83 | 13.04 | 5.89 | 10.67 | 11.12 | 15.48 | 20.56 | 12.02 |
| P/S Ratio | 1.54 | 1.41 | 1.39 | 1.30 | 1.73 | 1.89 | 1.38 | 1.63 | 1.17 | 1.42 | 1.20 |
| P/B Ratio | 2.61 | 2.37 | 2.57 | 2.37 | 2.89 | 2.35 | 1.15 | 1.59 | 1.65 | 1.83 | 1.59 |
| P/FCF | 8.95 | 8.16 | 9.97 | 5.31 | 10.97 | 7.52 | 4.25 | 4.14 | 4.02 | 5.75 | 7.08 |
| P/OCF | 8.16 | 7.44 | 9.97 | 5.12 | 10.16 | 6.86 | 3.58 | 4.06 | 3.94 | 5.40 | 6.78 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.42 | 1.45 | 1.38 | 1.85 | 1.90 | 1.49 | 1.55 | 1.14 | 1.27 | 1.07 |
| EV / EBITDA | 10.88 | 9.93 | 9.94 | 9.29 | 10.25 | 7.77 | 13.22 | 10.58 | 9.41 | 10.48 | 7.57 |
| EV / EBIT | 11.75 | 9.98 | 9.98 | 9.30 | 10.37 | 8.27 | 19.75 | 13.46 | 11.40 | 10.77 | 8.07 |
| EV / FCF | — | 8.23 | 10.40 | 5.63 | 11.74 | 7.56 | 4.58 | 3.92 | 3.92 | 5.14 | 6.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.6% | 17.6% | 17.8% | 17.5% | 17.7% | 22.0% | 5.3% | 10.3% | 13.3% | 17.9% | 18.7% |
| Operating Margin | 13.2% | 13.2% | 13.6% | 13.9% | 16.6% | 21.4% | 6.0% | 10.4% | 9.1% | 10.5% | 12.1% |
| Net Profit Margin | 10.4% | 10.4% | 10.7% | 11.0% | 13.3% | 32.0% | 12.9% | 14.7% | 7.6% | 6.9% | 10.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.1% | 18.1% | 20.3% | 20.5% | 19.8% | 33.8% | 11.2% | 16.0% | 10.3% | 9.3% | 13.4% |
| ROA | 2.9% | 2.9% | 3.6% | 3.5% | 3.7% | 4.2% | 1.1% | 1.4% | 0.9% | 0.9% | 1.3% |
| ROIC | 16.3% | 16.3% | 17.2% | 16.5% | 16.9% | 16.0% | 3.9% | 9.1% | 10.6% | 12.9% | 13.7% |
| ROCE | 6.9% | 6.9% | 5.1% | 4.9% | 5.1% | 3.0% | 0.5% | 1.0% | 1.1% | 1.4% | 1.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.38 | 0.38 | 0.43 | 0.43 | 0.42 | 0.44 | 0.34 | 0.29 | 0.26 | 0.24 | 0.26 |
| Debt / EBITDA | 1.57 | 1.57 | 1.58 | 1.59 | 1.38 | 1.44 | 3.58 | 2.00 | 1.53 | 1.57 | 1.39 |
| Net Debt / Equity | — | 0.02 | 0.11 | 0.14 | 0.20 | 0.01 | 0.09 | -0.08 | -0.04 | -0.19 | -0.17 |
| Net Debt / EBITDA | 0.08 | 0.08 | 0.41 | 0.53 | 0.67 | 0.04 | 0.97 | -0.59 | -0.25 | -1.25 | -0.89 |
| Debt / FCF | — | 0.07 | 0.43 | 0.32 | 0.77 | 0.04 | 0.33 | -0.22 | -0.10 | -0.61 | -0.75 |
| Interest Coverage | 14.41 | 14.41 | 15.79 | 15.12 | 14.21 | 15.20 | 4.85 | 10.32 | 11.31 | 9.52 | 11.22 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.50 | 0.50 | 1.13 | 1.07 | 0.93 | 1.51 | 1.42 | 1.66 | 1.38 | 1.92 | 1.90 |
| Quick Ratio | 0.50 | 0.50 | 1.13 | 1.07 | 0.93 | 1.51 | 1.42 | 1.66 | 1.38 | 1.92 | 1.90 |
| Cash Ratio | 0.10 | 0.10 | 0.54 | 0.48 | 0.37 | 0.95 | 0.82 | 1.05 | 0.76 | 1.29 | 1.29 |
| Asset Turnover | — | 0.25 | 0.33 | 0.31 | 0.28 | 0.25 | 0.08 | 0.09 | 0.12 | 0.12 | 0.12 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.8% | 5.3% | 6.9% | 6.8% | 10.4% | 20.2% | 4.3% | 4.4% | 4.8% | 4.3% | 2.4% |
| Payout Ratio | 72.0% | 72.0% | 88.8% | 80.3% | 135.1% | 119.0% | 45.6% | 49.5% | 74.3% | 87.8% | 28.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 7.4% | 7.7% | 8.5% | 7.7% | 17.0% | 9.4% | 9.0% | 6.5% | 4.9% | 8.3% |
| FCF Yield | 11.2% | 12.2% | 10.0% | 18.8% | 9.1% | 13.3% | 23.5% | 24.2% | 24.9% | 17.4% | 14.1% |
| Buyback Yield | 0.8% | 0.9% | 0.0% | 2.1% | 0.1% | 2.7% | 4.0% | 0.0% | 0.1% | 0.0% | 1.7% |
| Total Shareholder Yield | 5.6% | 6.2% | 6.9% | 8.9% | 10.5% | 22.9% | 8.3% | 4.4% | 4.9% | 4.3% | 4.1% |
| Shares Outstanding | — | $84M | $84M | $85M | $85M | $86M | $89M | $91M | $91M | $90M | $89M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying AFG stock.
American Financial Group, Inc.'s current P/E ratio is 14.9x. The historical average is 13.8x. This places it at the 79th percentile of its historical range.
American Financial Group, Inc.'s current EV/EBITDA is 10.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.6x.
American Financial Group, Inc.'s return on equity (ROE) is 18.1%. The historical average is 11.6%.
Based on historical data, American Financial Group, Inc. is trading at a P/E of 14.9x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Financial Group, Inc.'s current dividend yield is 4.82% with a payout ratio of 72.0%.
American Financial Group, Inc. has 17.6% gross margin and 13.2% operating margin. Operating margin between 10-20% is typical for established companies.
American Financial Group, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Social inflation and crop volatility
Metrics are mathematically derived from official filings.
Combined Ratio Resilience Masks Volatility
AFG's combined ratio averaged 86.2% over the last ten quarters, with Q2 2026 at 84.1%, indicating consistent underwriting profitability despite quarterly swings, as per financial statements.
The combined ratio has remained below 90% for ten consecutive quarters, but the loss ratio component has been volatile, ranging from 50.2% in Q2 2026 to 86.0% in Q3 2024. This volatility likely reflects catastrophe losses and reserve development, particularly in casualty lines. The expense ratio spiked to 33.9% in Q2 2026, up from typical 4-5% levels, suggesting one-time costs or a change in allocation, which warrants investigation. The sustained sub-90% combined ratio indicates strong underwriting discipline, but the Q2 2026 EPS miss suggests that reserve releases may have masked underlying deterioration in accident-year profitability.
ROE Decomposition Reveals Underwriting Dependence
ROE has ranged from 3.5% to 6.3% quarterly, with underwriting margins contributing 10-19% of premiums, while investment income on float remains undisclosed, per reported figures.
Quarterly ROE is modest, averaging around 4.8%, which is below the peer group's 20%+ ROE. The underwriting margin (100% - combined ratio) has been consistently positive, contributing 10-19% of net premiums earned, but this is offset by investment income that is not explicitly disclosed. The low ROE relative to peers like RLI (24.4%) suggests that AFG's investment portfolio may be underperforming or that the company holds excess capital. The Q2 2026 ROE of 5.2% is slightly above the trailing average, but the EPS miss indicates that underwriting profitability may be deteriorating, which could pressure future ROE.
Underwriting Leverage Low, Capital Buffer Strong
With a debt-to-equity ratio of 0.38% and equity of $4.8B against $28.2B liabilities, AFG's underwriting leverage appears conservative, based on balance sheet data.
The premium-to-surplus ratio is not directly provided, but the exceptionally low debt-to-equity ratio and substantial equity base suggest that AFG operates with significant capital redundancy. This conservative leverage provides a cushion for catastrophe losses and reserve development, but it also implies that the company may not be optimizing its return on equity. The $1.7B cash pile and low leverage suggest that AFG has ample capacity to absorb shocks, but investors should monitor whether this capital is being deployed efficiently or simply hoarded, given the flat revenue growth.
Valuation Discount Reflects Lower ROE
AFG trades at 2.50x book value and 14.32x trailing earnings, a discount to RLI's 3.32x P/B and 24.4% ROE, as per peer data.
AFG's P/B of 2.50 is below RLI's 3.32 and WRB's 2.88, but above Markel's 1.23. The discount to RLI is justified by AFG's lower ROE (5.2% vs. 24.4%) and higher earnings volatility from crop insurance. However, AFG's forward P/E of 12.28 is lower than RLI's 14.67, suggesting the market expects improved earnings. The 5.0% dividend yield is attractive relative to peers, but it may indicate that the market is pricing in limited growth. AFG's combined ratio is competitive, but its ROE lags due to lower investment leverage and a more conservative capital structure.
Combined Ratio Misleads Without Reserve Adjustments
The combined ratio, while below 90%, may be flattered by prior-year reserve releases, obscuring accident-year deterioration, as suggested by the Q2 2026 EPS miss.
The most commonly misapplied ratio for insurers is the combined ratio, which can be distorted by reserve development. AFG's loss ratios have been volatile, and the Q2 2026 EPS miss indicates that adverse development in casualty lines may be emerging. Investors should adjust the combined ratio for prior-year reserve changes to assess accident-year profitability. Additionally, the expense ratio spike in Q2 2026 to 33.9% suggests that the reported combined ratio may not be sustainable. A more accurate measure would be the accident-year combined ratio, which strips out reserve releases and provides a clearer picture of current underwriting discipline.