Is American Financial Group, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for American Financial Group, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 13, which is lower than the peer average of 15.03, and an EV to EBITDA ratio of 119.92, significantly higher than its peers. Additionally, the Price to Book Value stands at 2.38, suggesting that the stock is trading at a premium compared to its book value.
In comparison to its peers, RenaissanceRe Holdings Ltd. is rated attractive with a P/E of 6.29, while Erie Indemnity Co. is also expensive at a P/E of 36.82. This highlights the relative overvaluation of American Financial Group, Inc. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -3.44% compared to the index's 15.47%, reinforcing the notion of overvaluation in the current market context.