AFG Valuation

American Financial Group Inc

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135.860

-0.72(-0.527%)1D

Overview
Forecast
Valuation
Earnings

AFG Relative Valuation

AFG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AFG is overvalued; if below, it's undervalued.

Historical Valuation

American Financial Group Inc (AFG) is now in the Fair zone, suggesting that its current forward PE ratio of 12.60 is considered Fairly compared with the five-year average of 11.92. The fair price of American Financial Group Inc (AFG) is between 110.48 to 142.77 according to relative valuation methord.

Relative Value

Fair Zone

110.48-142.77

Current Price：135.86

Fair

12.60

Trailing

Forward

0.00

EV/EBITDA

American Financial Group Inc. (AFG) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

0.00

EV/EBIT

American Financial Group Inc. (AFG) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.

1.53

American Financial Group Inc. (AFG) has a current PS of 1.53. The 5-year average PS is 1.64. The thresholds are as follows: Strongly Undervalued below 1.14, Undervalued between 1.14 and 1.39, Fairly Valued between 1.89 and 1.39, Overvalued between 1.89 and 2.13, and Strongly Overvalued above 2.13. The current Forward PS of 1.53 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

American Financial Group Inc. (AFG) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

American Financial Group Inc. (AFG) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

American Financial Group Inc (AFG) has a current Price-to-Book (P/B) ratio of 2.51. Compared to its 3-year average P/B ratio of 2.52 , the current P/B ratio is approximately -0.27% higher. Relative to its 5-year average P/B ratio of 2.27, the current P/B ratio is about 10.58% higher. American Financial Group Inc (AFG) has a Forward Free Cash Flow (FCF) yield of approximately 14.70%. Compared to its 3-year average FCF yield of 12.68%, the current FCF yield is approximately 15.99% lower. Relative to its 5-year average FCF yield of 15.95% , the current FCF yield is about -7.80% lower.

2.51

P/B

Median3y

2.52

Median5y

2.27

14.70

FCF Yield

Median3y

12.68

Median5y

15.95

Competitors Valuation Multiple

The average P/S ratio for AFG's competitors is 1.75, providing a benchmark for relative valuation. American Financial Group Inc Corp (AFG) exhibits a P/S ratio of 1.53, which is -12.62% above the industry average. Given its robust revenue growth of 2.02%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

AFG.N

American Financial Group Inc

Renaissancere Holdings Ltd

Hanover Insurance Group Inc

0.95

7.24%

6.21B

Performance Decomposition

Market capitalization of AFG increased by 7.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.05 to 14.92.

The secondary factor is the Revenue Growth, contributed 2.02%to the performance.

Overall, the performance of AFG in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.02%

1.88B → 1.92B

Revenue Growth

-18.42%

11.13 → 9.08

Margin Expansion

23.86%

12.05 → 14.92

P/E Change

7.46%