Is American Financial Group, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for American Financial Group, Inc. moved from expensive to fair. The company is currently fairly valued, with a P/E ratio of 13, which is slightly below the peer average of 13.70 for Markel Group, Inc. and 15.00 for Loews Corp. Additionally, the EV to EBITDA ratio stands at 119.92, significantly higher than the 88.49 of Markel Group, indicating a disparity in valuation metrics. The ROE of 18.19% reflects a strong return on equity, which is a positive sign for investors.
In comparison to its peers, American Financial Group, Inc. is positioned reasonably well, especially when considering the valuation metrics of RenaissanceRe Holdings Ltd., which is rated attractive with a P/E of 7.89. Despite recent stock performance showing a decline year-to-date of 7.92% compared to a 2.44% increase in the S&P 500, the overall valuation suggests that the stock is currently fairly priced relative to its peers.