American Financial GroupAFG -0.64%80 Debt-to-EBITDA is 1.59 as of Mar. 2026, which is 18% above its 10-year median of 1.35. GuruFocus rates AFG with a GF Score™ of 80/100 and a GF Value™ of $126.33 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 322 Insurance companies, American Financial Group ranks worse than 56.21% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for American Financial Group's Debt-to-EBITDA or its related term are showing as below:
AFG'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.14 Med: 1.35 Max: 2.7
Current: 1.41
During the past 13 years, the highest Debt-to-EBITDA Ratio of American Financial Group was 2.70. The lowest was 1.14. And the median was 1.35.
AFG's Debt-to-EBITDA is ranked worse than 56.21% of 322
companies
in the Insurance industry
Industry Median: 1.175
vs AFG: 1.41
American Financial Group (NYSE:AFG) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
American Financial Group Debt-to-EBITDA Related Terms
American Financial Group Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, American Financial Group's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Financial Group Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where American Financial Group's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
American Financial Group (AFG) has a Debt-to-EBITDA of 1.59 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Financial Group. This is 18% above median its historical median of 1.35. Over the past decade, American Financial Group's Debt-to-EBITDA has ranged from 1.14 to 2.70. According to the industry distribution chart, American Financial Group ranks #181 out of 322 companies in the Insurance industry, placing it in the top 56.2%.
Is American Financial Group's Debt-to-EBITDA too high?
American Financial Group's current Debt-to-EBITDA of 1.59 is 18% above median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 2.70. The Insurance industry median Debt-to-EBITDA is 1.18. American Financial Group's value of 1.59 is 35.3% above this industry median. Based on the distribution chart, American Financial Group ranks #181 out of 322 companies in the Insurance industry, which is below the industry midpoint. Overall, American Financial Group has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's Debt-to-EBITDA compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #181 out of 322 companies for Debt-to-EBITDA. This places American Financial Group in the lower half of its industry. The industry median Debt-to-EBITDA is 1.18. American Financial Group's value of 1.59 is 35.3% above this benchmark. Historically, American Financial Group's own Debt-to-EBITDA has ranged from 1.14 to 2.70 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 1.18, American Financial Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.18, based on 322 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current Debt-to-EBITDA of 1.59 is 35.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on American Financial Group. For the Insurance industry, the median Debt-to-EBITDA is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current Debt-to-EBITDA is 1.59, which is 18% above median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Financial Group stock overvalued right now?
Based on GuruFocus' analysis, American Financial Group (AFG) is currently considered Modestly Overvalued. The stock's GF Value™ is $126.33, compared to a current price of $141.38 — trading 11.9% above its estimated fair value. The current Debt-to-EBITDA is 1.59, which is 18% above median its 10-year median of 1.35 and 35.3% above the Insurance industry median of 1.18. American Financial Group's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For American Financial Group (AFG), the current Debt-to-EBITDA is 1.59 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Financial Group (AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Financial Group stock appears to be overvalued.
The current stock price of $141.38 is trading 11.9% above its estimated GF Value™ of $126.33.
GuruFocus considers American Financial Group to be Modestly Overvalued.
Key valuation signals for AFG:
Debt-to-EBITDA: 1.59 (18% above median its 10-year median of 1.35)
GF Value™: $126.33 vs. price of $141.38 (11.9% above fair value)
Industry Position: 35.3% above the Insurance median (#181 of 322)
No single metric tells the full story. See the AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Financial Group Inc is an insurance holding company. Through its subsidiaries, it is engaged in the property and casualty insurance business, focusing on specialized commercial products for businesses. The group operates through two segments: Property and Casualty Insurance, which generates maximum revenue, and Other. The Property and Casualty Insurance segment is further divided into different sub-segments, such as Property and transportation, Specialty casualty, and Specialty financial. These sub-segments offer insurance coverage for vehicles and commercial property, customized programs for small to mid-sized businesses, workers' compensation insurance, risk management insurance programs for lending and leasing institutions, trade credit insurance, and other insurance products.
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