Latest Ratios: P/E Ratio 1.9x · EV/EBITDA -11.9x · 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 | $1.6B | $1.7B | $1.8B | $2.0B | $1.8B | $2.5B | $2.6B | — | — | — | — |
| Enterprise Value | $-13730176508 | $-13631045000 | $1.9B | $2.4B | $2.6B | $2.5B | $3.0B | — | — | — | — |
| P/E Ratio → | 1.94 | 2.06 | 2.05 | 2.30 | 2.04 | 2.31 | 3.50 | — | — | — | — |
| P/S Ratio | 0.20 | 0.21 | 0.23 | 0.26 | 0.27 | 0.40 | 0.46 | — | — | — | — |
| P/B Ratio | 0.34 | 0.36 | 0.41 | 0.46 | 0.45 | 0.50 | 0.38 | — | — | — | — |
| P/FCF | 1.17 | 1.24 | 1.78 | 1.03 | 1.72 | 1.51 | 1.21 | — | — | — | — |
| P/OCF | 1.06 | 1.13 | 1.58 | 1.00 | 1.59 | 1.46 | 1.18 | — | — | — | — |
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 | — | -1.68 | 0.24 | 0.32 | 0.38 | 0.40 | 0.54 | — | — | — | — |
| EV / EBITDA | -11.91 | -11.82 | 1.57 | 2.10 | 2.13 | 1.91 | 0.55 | — | — | — | — |
| EV / EBIT | -1.73 | -11.82 | 1.57 | 2.10 | 2.13 | 1.73 | — | — | — | — | — |
| EV / FCF | — | -9.75 | 1.85 | 1.27 | 2.41 | 1.49 | 1.42 | — | — | — | — |
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% | 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% | 3.2% | 3.5% | 3.7% | 2.7% | 1.0% | 1.4% | 0.9% | 0.9% | 1.3% |
| ROIC | — | — | 123.7% | 117.1% | 104.0% | 13.5% | 64.6% | 85.8% | 12.1% | 17.1% | 16.8% |
| ROCE | 25.0% | 25.0% | 44.9% | 49.6% | 43.1% | 2.6% | 8.7% | 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 | 0.43 | 0.39 | 0.40 | 0.42 | 0.31 | 0.26 | 0.26 | 0.24 | 0.26 |
| Debt / EBITDA | 1.58 | 1.58 | 1.58 | 1.46 | 1.33 | 1.63 | 0.38 | 0.28 | 1.39 | 1.23 | 1.16 |
| Net Debt / Equity | — | -3.19 | 0.02 | 0.11 | 0.18 | -0.01 | 0.07 | -0.11 | -0.04 | -0.19 | -0.17 |
| Net Debt / EBITDA | -13.32 | -13.32 | 0.06 | 0.39 | 0.61 | -0.02 | 0.08 | -0.11 | -0.23 | -0.98 | -0.75 |
| Debt / FCF | — | -10.99 | 0.07 | 0.24 | 0.69 | -0.02 | 0.22 | -0.27 | -0.11 | -0.61 | -0.75 |
| Interest Coverage | 14.41 | 14.41 | 15.79 | 15.12 | 14.21 | 15.20 | 62.86 | 87.16 | 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 | 1.80 | 0.39 | 0.65 | 0.32 | 0.84 | 0.72 | 0.75 | 0.80 |
| Quick Ratio | — | — | 0.25 | 3.61 | 0.49 | 0.75 | 0.32 | 1.26 | 1.09 | 1.23 | 1.26 |
| Cash Ratio | — | — | 0.14 | 0.13 | 0.10 | 0.25 | 0.32 | 0.30 | 0.21 | 0.33 | 0.33 |
| Asset Turnover | — | 0.25 | 0.26 | 0.30 | 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 | 37.0% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 72.0% | 72.0% | 88.8% | 80.3% | 135.1% | 177.3% | 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 | 51.5% | 48.6% | 48.8% | 43.4% | 49.0% | 43.2% | 28.5% | — | — | — | — |
| FCF Yield | 85.7% | 80.8% | 56.1% | 96.7% | 58.2% | 66.1% | 82.8% | — | — | — | — |
| Buyback Yield | 6.1% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 43.1% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $84M | $84M | $85M | $85M | $86M | $89M | $91M | $91M | $90M | $89M |
Social inflation litigation exposure
Based on current market data, AFGD trades at a P/B ratio of 0.34, which appears significantly disconnected from the peer group average and suggests that investors are heavily discounting the firm's book value despite its historical specialty underwriting success and consistent capital return profile.
The current valuation multiple warrants investigation, as it implies a market expectation of significant future reserve deterioration or a lack of confidence in the sustainability of underwriting margins. This deep discount may suggest that the market is mispricing the company's transition to a pure-play specialty insurer, potentially ignoring the improved earnings quality post-annuity divestiture.
As reported in the 2025Q4 financial statements, the company achieved a combined ratio of 81.6%, a figure that underscores the effectiveness of its decentralized underwriting model in maintaining profitability despite the broader cyclical pressures impacting the property and casualty insurance sector.
The 81.6% combined ratio indicates that the firm is successfully generating underwriting profit, which is the primary engine for long-term value creation. Investors should monitor whether this performance is sustainable or if it relies too heavily on favorable prior-year reserve development, which can mask underlying attritional loss trends in specialty casualty lines.
According to recent quarterly filings, AFGD maintains a debt-to-equity ratio of approximately 0.38, a level that reflects a fortress-like balance sheet and provides the company with significant capacity to navigate market volatility or pursue opportunistic capital allocation strategies.
This low leverage profile is a key differentiator, as it allows the firm to absorb potential shocks from social inflation without compromising its financial stability. The consistency of this ratio over the last ten quarters suggests a disciplined approach to capital management that prioritizes long-term solvency over aggressive balance sheet expansion.
While peers like RLI Corp and W.R. Berkley command P/B multiples near 3.0x, AFGD's significantly lower valuation suggests a persistent market disconnect, as indicated by the company's 0.34 P/B ratio compared to the broader specialty insurance peer group's premium pricing.
The valuation gap appears to be driven by a combination of historical accounting complexities and a potential misunderstanding of the firm's current risk profile. If the company continues to demonstrate underwriting discipline, this discount may narrow as the market gains clarity on the post-divestiture earnings power of the core specialty business.
Based on an analysis of industry metrics, the P/E ratio is the most commonly misapplied metric for AFGD, as it fails to account for the volatility inherent in reserve adjustments and the significant impact of investment income on the firm's reported net earnings.
Investors should prioritize the combined ratio and P/B as more reliable indicators of underwriting health and franchise value. Relying on P/E ratios in the insurance sector often leads to flawed conclusions, as it ignores the cyclical nature of catastrophe losses and the non-cash accruals that frequently distort bottom-line profitability.
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 AFGD stock.
American Financial Group, Inc.'s current P/E ratio is 1.9x. The historical average is 2.4x.
American Financial Group, Inc.'s current EV/EBITDA is -11.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 1.7x.
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 1.9x. Compare with industry peers and growth rates for a complete picture.
American Financial Group, Inc.'s current dividend yield is 37.05% 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.