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 appears overvalued based on its valuation metrics, including 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 to peers, American Financial Group's P/E ratio of 15.03 is higher than RenaissanceRe Holdings Ltd.'s attractive P/E of 6.29, while Selective Insurance Group, Inc. has a fair P/E of 21.83.
The stock has underperformed relative to the S&P 500 over various periods, with a year-to-date return of -3.44% compared to the S&P 500's 15.47%, and a three-year return of -0.49% versus 78.85% for the index. This performance further supports the conclusion that American Financial Group, Inc. is currently overvalued.