Latest Ratios: P/E Ratio 2.0x · EV/EBITDA -11.8x · ROE 18.1%. (2003–2025 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 | $1.7B | $1.8B | $1.9B | $2.0B | $1.9B | $2.3B | $2.6B | $2.5B | — | — | — |
| Enterprise Value | $-13658539540 | $-13562575000 | $2.0B | $2.3B | $2.7B | $2.3B | $3.0B | $1.8B | — | — | — |
| P/E Ratio → | 2.03 | 2.14 | 2.13 | 2.39 | 2.13 | 2.14 | 3.50 | 2.78 | — | — | — |
| P/S Ratio | 0.21 | 0.22 | 0.24 | 0.27 | 0.28 | 0.37 | 0.46 | 0.42 | — | — | — |
| P/B Ratio | 0.35 | 0.37 | 0.42 | 0.48 | 0.47 | 0.46 | 0.38 | 0.40 | — | — | — |
| P/FCF | 1.22 | 1.29 | 1.85 | 1.07 | 1.79 | 1.40 | 1.21 | 1.03 | — | — | — |
| P/OCF | 1.11 | 1.17 | 1.64 | 1.03 | 1.66 | 1.35 | 1.18 | 1.02 | — | — | — |
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 | — | -1.67 | 0.24 | 0.31 | 0.39 | 0.37 | 0.54 | 0.31 | — | — | — |
| EV / EBITDA | -11.85 | -11.76 | 0.25 | 0.31 | 0.39 | 1.77 | 0.55 | 0.31 | — | — | — |
| EV / EBIT | -1.72 | -11.76 | — | — | — | 1.60 | — | — | — | — | — |
| EV / FCF | — | -9.70 | 1.92 | 1.21 | 2.49 | 1.38 | 1.42 | 0.76 | — | — | — |
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 | 45.9% | 45.9% | 100.0% | 100.0% | 100.0% | 105.2% | 100.0% | 100.0% | 102.3% | 100.9% | 100.7% |
| Operating Margin | 97.7% | 97.7% | 99.5% | 99.5% | 99.5% | 17.7% | 99.2% | 99.2% | 10.4% | 14.0% | 15.0% |
| Net Profit Margin | 10.4% | 10.4% | 11.1% | 11.4% | 13.2% | 21.5% | 13.1% | 15.0% | 7.6% | 7.0% | 10.1% |
| 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% | 22.7% | 11.2% | 16.0% | 10.3% | 9.3% | 13.4% |
| ROA | 2.7% | 2.7% | 2.9% | 3.2% | 3.7% | 2.8% | 1.1% | 1.4% | 0.9% | 0.9% | 1.3% |
| ROIC | — | — | 131.9% | 119.3% | 104.0% | 13.5% | 64.6% | 85.8% | 12.1% | 17.1% | 16.8% |
| ROCE | 25.0% | 25.0% | 39.2% | 42.3% | 43.1% | 2.8% | 9.1% | 10.6% | 1.4% | 2.0% | 2.2% |
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 | 0.33 | 0.35 | 0.40 | 0.42 | 0.31 | 0.26 | 0.26 | 0.24 | 0.26 |
| Debt / EBITDA | 1.58 | 1.58 | 0.19 | 0.20 | 0.24 | 1.63 | 0.38 | 0.28 | 1.39 | 1.23 | 1.16 |
| Net Debt / Equity | — | -3.19 | 0.02 | 0.06 | 0.18 | -0.01 | 0.07 | -0.11 | -0.04 | -0.19 | -0.17 |
| Net Debt / EBITDA | -13.32 | -13.32 | 0.01 | 0.04 | 0.11 | -0.02 | 0.08 | -0.11 | -0.23 | -0.98 | -0.75 |
| Debt / FCF | — | -10.99 | 0.07 | 0.14 | 0.69 | -0.02 | 0.22 | -0.27 | -0.11 | -0.61 | -0.75 |
| Interest Coverage | 14.41 | 14.41 | 104.86 | 97.58 | 79.69 | 15.20 | 62.86 | 87.16 | 104.61 | 72.39 | 76.03 |
Net cash position: cash ($17.2B) exceeds total debt ($1.8B)
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 | — | — | 0.25 | 0.13 | 0.39 | 0.65 | 0.45 | 0.84 | 0.72 | 0.75 | 0.80 |
| Quick Ratio | — | — | 0.25 | 0.37 | 0.49 | 0.75 | 0.45 | 0.96 | 1.09 | 1.23 | 1.26 |
| Cash Ratio | — | — | 0.14 | 0.13 | 0.10 | 0.25 | 0.21 | 0.30 | 0.21 | 0.33 | 0.33 |
| Asset Turnover | — | 0.25 | 0.26 | 0.25 | 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 | 35.5% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 72.0% | 72.0% | 88.8% | 80.3% | 135.1% | 177.3% | 22.0% | 49.5% | 24.0% | 22.9% | 15.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 49.3% | 46.8% | 47.0% | 41.9% | 46.9% | 46.7% | 28.5% | 36.0% | — | — | — |
| FCF Yield | 82.1% | 77.7% | 54.0% | 93.4% | 55.7% | 71.5% | 82.7% | 96.7% | — | — | — |
| Buyback Yield | 5.8% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 41.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $84M | $84M | $85M | $85M | $86M | $89M | $91M | $91M | $90M | $89M |
Social inflation litigation exposure
Based on reported financial data, AFGB trades at a P/B ratio of 0.35, which appears significantly disconnected from its historical averages and peer group multiples, suggesting that the market may be misinterpreting the company's capital structure following the divestiture of its life and annuity business segments.
The current valuation multiple warrants further investigation as it sits well below the specialty peer group, potentially indicating that investors are discounting the firm due to the complexity of its holding company structure. This discount may not fully account for the Lindner family's history of returning excess capital through special dividends, which effectively manages the book value drag from the company's substantial cash position.
As reported in recent financial statements, AFGB maintained a combined ratio of 81.4% in 2025Q4, signaling robust underwriting discipline that significantly outperforms industry benchmarks and suggests the company is successfully navigating the current hard market cycle through its specialized, niche-focused underwriting model across its diverse P&C segments.
The ability to maintain a combined ratio well below the 100% threshold indicates that AFGB's decentralized underwriting brands are successfully pricing risk in idiosyncratic markets. Investors should monitor whether this performance is sustainable, as the reliance on niche sectors requires constant adaptation to avoid the broader competitive pressures that typically compress margins in more commoditized insurance lines.
According to the latest balance sheet figures, AFGB maintains a total asset base of $32.4 billion against $27.7 billion in liabilities, which implies a robust solvency position that provides the company with significant capacity for both organic growth and potential future capital returns to shareholders.
The company's premium-to-surplus ratio appears well-positioned within rating agency guidelines, suggesting that the firm is not over-leveraging its capital base to chase top-line growth. This conservative leverage profile provides a buffer against the inherent volatility of its specialty casualty lines, ensuring that the company remains resilient even if loss costs spike unexpectedly.
The most commonly misapplied metric for AFGB is the P/E ratio, which, as shown in recent filings, is heavily distorted by one-time divestiture gains and reserve development, thereby obscuring the core underwriting profitability that should be the primary focus for institutional investors evaluating this specialty insurer.
Relying on P/E ratios for an insurer with significant investment float and periodic asset sales often leads to erroneous conclusions about operational health. Analysts should instead prioritize the combined ratio and return on equity, adjusted for prior-year reserve development, to gain a clearer picture of the company's true underwriting performance and long-term earnings power.
Includes 30+ ratios · 22 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AFGB stock.
American Financial Group, Inc.'s current P/E ratio is 2.0x. The historical average is 2.5x.
American Financial Group, Inc.'s current EV/EBITDA is -11.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.6x.
American Financial Group, Inc.'s return on equity (ROE) is 18.1%. The historical average is 12.7%.
Based on historical data, American Financial Group, Inc. is trading at a P/E of 2.0x. Compare with industry peers and growth rates for a complete picture.
American Financial Group, Inc.'s current dividend yield is 35.49% with a payout ratio of 72.0%.
American Financial Group, Inc. has 45.9% gross margin and 97.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
American Financial Group, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.