Latest Ratios: P/E Ratio 1.8x · EV/EBITDA -12.0x · 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 | $1.5B | $1.6B | $1.7B | $1.9B | $1.8B | $2.3B | $2.5B | $2.7B | — | — | — |
| Enterprise Value | $-13875116420 | $-13776335000 | $1.7B | $2.2B | $2.5B | $2.3B | $2.9B | $2.0B | — | — | — |
| P/E Ratio → | 1.77 | 1.88 | 1.89 | 2.21 | 1.96 | 2.17 | 3.38 | 2.97 | — | — | — |
| P/S Ratio | 0.18 | 0.20 | 0.21 | 0.25 | 0.26 | 0.38 | 0.44 | 0.33 | — | — | — |
| P/B Ratio | 0.31 | 0.33 | 0.38 | 0.44 | 0.43 | 0.47 | 0.36 | 0.43 | — | — | — |
| P/FCF | 1.06 | 1.13 | 1.65 | 0.99 | 1.65 | 1.42 | 1.17 | 1.11 | — | — | — |
| P/OCF | 0.97 | 1.03 | 1.46 | 0.96 | 1.52 | 1.36 | 1.13 | 1.09 | — | — | — |
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 | — | -1.70 | 0.22 | 0.29 | 0.37 | 0.37 | 0.53 | 0.25 | — | — | — |
| EV / EBITDA | -12.03 | -11.95 | 0.22 | 0.29 | 0.37 | 1.79 | 0.53 | 1.87 | — | — | — |
| EV / EBIT | -12.93 | -11.95 | — | — | — | 1.62 | — | 1.71 | — | — | — |
| EV / FCF | — | -9.85 | 1.71 | 1.14 | 2.34 | 1.40 | 1.38 | 0.83 | — | — | — |
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% | 102.7% | 100.0% | 101.9% | 102.3% | 100.9% | 100.7% |
| Operating Margin | 13.2% | 13.2% | 99.5% | 99.5% | 99.5% | 17.7% | 99.2% | 10.0% | 10.4% | 14.0% | 15.0% |
| Net Profit Margin | 10.4% | 10.4% | 11.1% | 11.4% | 13.2% | 21.5% | 13.1% | 11.1% | 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 | — | — | 128.6% | 119.3% | 104.0% | 13.5% | 64.6% | 11.7% | 12.1% | 17.1% | 16.8% |
| ROCE | 3.4% | 3.4% | 39.2% | 42.3% | 43.1% | 2.8% | 9.1% | 1.4% | 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 | 0.38 | 0.35 | 0.40 | 0.42 | 0.31 | 0.26 | 0.26 | 0.24 | 0.26 |
| Debt / EBITDA | 1.58 | 1.58 | 0.21 | 0.20 | 0.24 | 1.63 | 0.38 | 1.54 | 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 | -0.62 | -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 | 17.29 | 11.31 | 9.52 | 11.22 |
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 | 0.45 | 0.39 | 0.65 | 0.21 | 0.84 | 0.72 | 0.75 | 0.80 |
| Quick Ratio | — | — | 0.25 | 2.25 | 0.49 | 0.75 | 0.21 | 1.26 | 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 | 0.12 | 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 | 40.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 72.0% | 72.0% | 27.4% | 80.3% | 21.5% | 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 | 56.5% | 53.1% | 52.9% | 45.2% | 51.1% | 46.2% | 29.6% | 33.7% | — | — | — |
| FCF Yield | 94.0% | 88.2% | 60.8% | 100.8% | 60.7% | 70.6% | 85.8% | 90.5% | — | — | — |
| Buyback Yield | 6.7% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 47.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $84M | $84M | $85M | $85M | $86M | $89M | $91M | $91M | $90M | $89M |
Reserve development and litigation
As reported in recent financial statements, AFGC trades at a P/B ratio of 0.31, a valuation level that appears significantly disconnected from the company's historical underwriting performance and suggests the market may be heavily discounting the firm's future earnings potential relative to its tangible asset base.
The current P/B multiple of 0.31 is remarkably low for a specialty insurer, implying that investors are pricing in either significant hidden liabilities or a lack of confidence in the sustainability of current ROE levels. This valuation gap warrants further investigation into whether the market is misinterpreting the company's capital structure or if there is a fundamental concern regarding the quality of the underlying insurance reserves.
Based on the provided quarterly data, AFGC achieved a combined ratio of 81.4% in 2025Q4, demonstrating a robust underwriting margin that suggests the company's decentralized niche model remains highly effective at pricing idiosyncratic risks while maintaining a significant buffer against potential loss volatility.
The ability to consistently maintain a combined ratio well below the 100% threshold indicates strong underwriting discipline, which is the primary engine of the company's profitability. However, the historical presence of negative loss ratios in some periods suggests that favorable reserve development may be artificially enhancing these figures, necessitating a cautious approach when projecting future underwriting margins.
According to the company's financial records, AFGC maintains a debt-to-equity ratio of 0.38, a level that reflects a fortress balance sheet but may also indicate an inefficient capital structure that potentially constrains the company's overall return on equity compared to more aggressively leveraged industry peers.
While this low leverage provides a substantial cushion against catastrophic events, it may be viewed as a drag on shareholder returns in a high-interest-rate environment where capital could be more effectively deployed. Investors should monitor whether management intends to utilize this excess capacity for share repurchases or special dividends to improve capital efficiency.
As indicated by the company's P/E ratio of 1.76, the market's reliance on earnings-based multiples for AFGC appears fundamentally flawed, as it fails to account for the significant volatility introduced by reserve releases and the substantial investment income generated from the company's massive float.
Using P/E to value an insurer like AFGC obscures the true economic value of the underwriting franchise and the interest-earning potential of the float. Analysts should instead prioritize P/B as the primary valuation anchor, as it better reflects the underlying book value that supports the company's insurance reserves and long-term solvency.
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying AFGC stock.
American Financial Group, Inc.'s current P/E ratio is 1.8x. The historical average is 2.4x.
American Financial Group, Inc.'s current EV/EBITDA is -12.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.8x.
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 1.8x. Compare with industry peers and growth rates for a complete picture.
American Financial Group, Inc.'s current dividend yield is 40.66% with a payout ratio of 72.0%.
American Financial Group, Inc. has 45.9% 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.