American Financial Group, Inc. (AFG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+128.9%

$356.13

vs $155.60 price

Levered DCF

$340.11

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.35

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.56×	12.95×	11.82×	13.01×	5.85×	10.62×	10.99×	15.19×
P/B	2.37×	2.57×	2.36×	2.88×	2.33×	1.14×	1.57×	1.62×
P/S	1.41×	1.39×	1.3×	1.72×	1.88×	1.37×	1.61×	1.15×
EV / EBITDA	9.29×	9.35×	8.7×	9.56×	7.27×	11.55×	9.71×	8.61×
Gross margin	17.6%	17.8%	17.5%	17.7%	22.0%	5.3%	10.3%	13.3%
Operating margin	13.2%	13.6%	13.9%	16.6%	21.4%	6.0%	10.4%	9.1%
Net margin	10.4%	10.7%	11.0%	13.3%	32.0%	12.9%	14.7%	7.6%
Current ratio	0.5×	1.13×	1.07×	0.93×	1.51×	1.42×	1.66×	1.38×
Debt / equity	0.38×	0.43×	0.43×	0.42×	0.44×	0.34×	0.29×	0.26×
Interest coverage	13.41×	14.79×	14.12×	13.21×	14.2×	3.85×	9.32×	10.31×
Dividend yield	5.3%	6.9%	6.8%	10.4%	20.3%	4.3%	4.5%	4.9%
Payout ratio	72.0%	88.8%	80.3%	135.1%	119.0%	45.6%	49.5%	74.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.5%	19.9%	20.0%	22.2%	39.8%	10.8%	14.3%	10.7%
Return on invested capital	9.7%	4.0%	3.9%	4.1%	4.8%	0.5%	0.8%	0.9%
Return on assets	2.6%	3.5%	3.5%	3.7%	8.0%	1.0%	1.3%	0.9%
Free cash flow yield	12.2%	10.0%	18.8%	9.1%	13.4%	23.7%	24.5%	25.3%
Earnings yield	7.4%	7.7%	8.5%	7.7%	17.1%	9.4%	9.1%	6.6%
Enterprise value	$11.5B	$12B	$10.7B	$12.5B	$11.8B	$8.4B	$9.3B	$7.8B
Net debt / EBITDA	0.08×	0.38×	0.5×	0.63×	0.04×	0.85×	-0.55×	-0.23×
Cash conversion cycle (days)	312	68	69	72	74	79	80	64