American Financial Group

UNDERVALUEDAFG · NYSE · Financial Services
AFG·NYSE·Financial Services
UNDERVALUED
American Financial Group
51.7%upside
MARKET PRICE
$128.12
FAIR PRICE
$194.34
MARGIN
$66.22
UNDERVALUEDFAIROVERVALUED
P/E RATIO
13.8x
DIV. YIELD
5.28%
ROE
17.6%
MARKET CAP
$11B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

51.7%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$128.12

FAIR PRICE

$194.34

MARGIN

$66.22

UNDERVALUEDFAIROVERVALUED

P/E Ratio

13.8x

What is P/E? →

Div. Yield

5.28%

ROE

17.6%

Strong

Market Cap

$11B

Large-cap

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FPI RATING

3.9/ 10

High-quality fundamentals, but weak profitability margins and limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$155.47CONSERVATIVE ENTRY
$194.34FAIR PRICE
$128.12MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$155.47

Fair price × 0.80

DISTANCE

21.3%

Price to entry level

At the current price of $128.12, AFG trades 21.3% below the conservative entry level of $155.47. The stock is currently priced below the 20% margin of safety threshold, indicating a potential value opportunity based on the model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate AFG's fair price

American Financial Group's fair price of $194.34 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $128.12, AFG trades 51.7% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting AFG's risk profile.

RELATIVE · 30%

Comparing AFG's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for AFG, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate AFG's fair value with your own inputs.

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FAQ

What is the fair price of AFG?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for American Financial Group is $194.34. At the current market price of $128.12, AFG trades 51.7% below its calculated fair value.

Is AFG overvalued or undervalued?+

American Financial Group is currently undervalued based on our valuation model. The stock trades at $128.12, which is 51.7% below the fair price of $194.34. The P/E ratio of 13.8x is a key metric in the valuation.

What is the margin of safety for AFG?+

With a 20% margin of safety applied to the fair price of $194.34, the conservative entry level for AFG is $155.47. At the current market price of $128.12, the stock trades 21.3% below this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is AFG's fair price updated?+

We update fair price calculations for AFG daily after market close. The current fair price of $194.34 incorporates the latest market data and sector multiples.

What factors affect AFG's fair price calculation?+

AFG's fair price of $194.34 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 13.8x, ROE of 17.6%, and dividend yield of 5.28%.

Is AFG a good buy right now?+

At $128.12, AFG trades 51.7% below our fair value estimate of $194.34. The stock is currently undervalued. ROE stands at 17.6% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does AFG pay dividends?+

AFG has a dividend yield of 5.28%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.