Is American Financial Group, Inc. overvalued or undervalued?

Oct 28 2025 11:11 AM IST
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As of October 24, 2025, American Financial Group, Inc. is considered overvalued with a valuation grade of expensive, reflected by its metrics and underperformance against the S&P 500.
As of 24 October 2025, the valuation grade for American Financial Group, Inc. has moved from fair to expensive. The company appears to be overvalued based on its current 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 to peers, American Financial Group's P/E ratio is lower than Everest Group Ltd. at 31.11 but higher than RenaissanceRe Holdings Ltd. at 6.29, indicating a relative overvaluation in its sector.

Additionally, the company has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -3.44% compared to the index's 15.47%, and a five-year return of 74.41% versus 95.99% for the S&P 500. This trend reinforces the notion that American Financial Group, Inc. may not be a favorable investment at its current valuation.
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