Latest Ratios: P/E Ratio 14.2x · EV/EBITDA 10.3x · 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 | $11.9B | $11.4B | $11.5B | $10.1B | $11.7B | $11.8B | $7.8B | $10.0B | $8.2B | $9.7B | $7.8B |
| Enterprise Value | $12.0B | $11.5B | $12.0B | $10.7B | $12.5B | $11.8B | $8.4B | $9.5B | $8.0B | $8.7B | $7.0B |
| P/E Ratio → | 14.17 | 13.56 | 12.95 | 11.83 | 13.04 | 5.89 | 10.67 | 11.12 | 15.48 | 20.56 | 12.02 |
| P/S Ratio | 1.45 | 1.40 | 1.39 | 1.30 | 1.73 | 1.89 | 1.38 | 1.63 | 1.17 | 1.42 | 1.20 |
| P/B Ratio | 2.47 | 2.37 | 2.57 | 2.37 | 2.89 | 2.35 | 1.15 | 1.59 | 1.65 | 1.83 | 1.59 |
| P/FCF | 8.49 | 8.16 | 9.97 | 5.31 | 10.97 | 7.52 | 4.25 | 4.14 | 4.02 | 5.75 | 7.08 |
| P/OCF | 7.74 | 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 | — | 1.41 | 1.45 | 1.38 | 1.85 | 1.90 | 1.49 | 1.55 | 1.14 | 1.27 | 1.07 |
| EV / EBITDA | 10.32 | 9.93 | 9.94 | 9.29 | 10.25 | 7.77 | 13.22 | 10.58 | 9.41 | 10.48 | 7.57 |
| EV / EBIT | 11.14 | 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 | 46.3% | 46.3% | 17.8% | 17.5% | 17.7% | 22.0% | 5.3% | 10.3% | 13.3% | 17.9% | 18.7% |
| Operating Margin | 13.1% | 13.1% | 13.6% | 13.9% | 16.6% | 21.4% | 6.0% | 10.4% | 9.1% | 10.5% | 12.1% |
| Net Profit Margin | 10.3% | 10.3% | 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 | 5.1% | 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 | 7.1% | 7.4% | 7.7% | 8.5% | 7.7% | 17.0% | 9.4% | 9.0% | 6.5% | 4.9% | 8.3% |
| FCF Yield | 11.8% | 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 | 5.9% | 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 |
Crop insurance volatility exposure
Based on reported figures, AFG trades at a P/B of 2.41, which suggests that investors are pricing in a premium for the company's specialized underwriting expertise compared to broader market averages, though this valuation remains sensitive to the inherent volatility of its niche agricultural and casualty segments.
The current P/B multiple appears to reflect market confidence in AFG's ability to maintain underwriting discipline, yet it sits below the higher multiples commanded by peers like RLI Corp. This discount may indicate that the market is still discounting the earnings volatility associated with the company's crop insurance exposure, despite the strong ROE potential inherent in its decentralized model.
As reported in quarterly financial filings, AFG has maintained a disciplined combined ratio profile, with the 2026Q1 figure of 87.1% demonstrating that the company continues to generate robust underwriting profits despite the inherent volatility of its niche specialty insurance portfolio and exposure to severe weather-related loss events.
The trajectory of the combined ratio, which has remained consistently below the 100% threshold, suggests that AFG's decentralized underwriting structure is effectively managing risk selection. However, the significant variance in the loss ratio—ranging from 48.9% to 86.0%—indicates that underwriting profitability remains highly susceptible to external shocks, particularly in the agricultural segment.
According to recent balance sheet data, AFG maintains a total liability-to-equity ratio that appears consistent with a healthy insurance carrier, with total liabilities reaching $21.2 billion against $4.7 billion in equity as of 2026Q1, providing a solid buffer for the company's ongoing specialty insurance underwriting activities.
The current leverage profile suggests that AFG is not overextending its capital base, which is critical given the potential for sudden reserve strengthening requirements in its long-tail casualty lines. Investors should monitor whether the company's preference for special dividends over share repurchases limits its ability to rapidly expand underwriting capacity during favorable market cycles.
Analysis of the provided data suggests that the P/E ratio is the most commonly misapplied metric for AFG, as it fails to account for the significant distortions caused by prior-year reserve development and the cyclical, weather-dependent nature of the company's agricultural insurance earnings.
Relying on P/E multiples obscures the underlying underwriting performance, which is better captured by the combined ratio and accident-year loss trends. Investors should instead focus on P/B as a valuation anchor, as it more accurately reflects the capital backing the insurance reserves and the intrinsic value of the float generated by the underwriting business.
Includes 30+ ratios · 30 years · Updated daily
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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 14.2x. The historical average is 13.8x. This places it at the 75th percentile of its historical range.
American Financial Group, Inc.'s current EV/EBITDA is 10.3x. 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 14.2x. This is at the 75th 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 5.08% with a payout ratio of 72.0%.
American Financial Group, Inc. has 46.3% gross margin and 13.1% 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.