Is American Financial Group, Inc. overvalued or undervalued?

As of 12 August 2025, the valuation grade for American Financial Group, Inc. has moved from expensive to fair. The company is currently fairly valued based on its metrics, with a P/E ratio of 13, a Price to Book Value of 2.38, and an EV to Sales ratio of 1.21. In comparison, peers such as Everest Group Ltd. exhibit a higher P/E ratio of 31.11, indicating that American Financial Group is more attractively priced relative to some competitors, while RenaissanceRe Holdings Ltd. shows a much lower P/E of 6.29, suggesting it is undervalued.
Despite its fair valuation, American Financial Group's recent stock performance has lagged behind the S&P 500, with a 1-year return of 3.87% compared to the S&P 500's 17.14%. However, over a 5-year period, the company has outperformed the index with a return of 109.79% versus the S&P 500's 96.61%. This mixed performance highlights the potential for growth while indicating that the stock may not be the best immediate investment compared to broader market trends.