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AFG (American Financial Group) GF Value Rank : 7 (As of Apr. 17, 2025)


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What is American Financial Group GF Value Rank?

American Financial Group has the GF Value Rank of 7.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison of American Financial Group's GF Value Rank

For the Insurance - Property & Casualty subindustry, American Financial Group's GF Value Rank, along with its competitors' market caps and GF Value Rank 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's GF Value Rank Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, American Financial Group's GF Value Rank distribution charts can be found below:

* The bar in red indicates where American Financial Group's GF Value Rank falls into.


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American Financial Group GF Value Rank Related Terms

Thank you for viewing the detailed overview of American Financial Group's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


American Financial Group Business Description

Traded in Other Exchanges
Address
301 East Fourth Street, Cincinnati, OH, USA, 45202
American Financial Group Inc is a holding company that is engaged in property and casualty insurance services. The company has a focus on specialized commercial products for businesses. The Company operates through two segments: Property & Casualty Insurance and Other. The Property & Casualty segment includes Property & Transportation, covering buses, trucks, marine, agriculture, and commercial property; Specialty Casualty, offering excess & surplus, liability, and professional insurance; and Specialty Financial, providing risk management for lending and leasing institutions, fidelity and surety products, and trade credit insurance. The company's insurance operations are conducted through the Great American Insurance Group.
Executives
Von Lehman John I director 301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
Gregory G Joseph director 301 EAST FOURTH STREET, CINCINNATI OH 45202
Amy Y Murray director 3429 ARNOLD STREET, CINCINNATI OH 45202
James E Evans director, officer: Sr. V. Pres. & Gen. Counsel 301 E FOURTH STREET, CINCINNATI OH 45202
Mark A Weiss officer: Senior VP & General Counsel 301 EAST FOURTH STREET, CINCINNATI OH 45202
Brian S. Hertzman other: principal financial officer 301 EAST FOURTH STREET, CINCINNATI OH 45202
Michelle A Gillis officer: Sr. Vice President 301 E. FOURTH STREET, 39TH FLOOR, CINCINNATI OH 45202
William W Verity director 301 EAST FOURTH STREET, CINCINNATI OH 45202
Terry S Jacobs director 301 EAST FOURTH STREET, CINCINNATI OH 45202
John B Berding director 301 E. FOURTH ST., 27TH FLOOR, CINCINNATI OH 45202
Thompson David Lawrence Jr officer: President of Subsidiary 301 EAST FOURTH STREET, CINCINNATI OH 45202
Lindner Carl H Iii director, officer: Co-President 14TH FLOOR PROVIDENT TOWER, ONE EAST FOURTH STREET, CINCINNATI OH 45202
S Craig Lindner director, officer: Co-President ONE EAST FOURTH STREET, CINCINNATI OH 45202
Vito C Peraino officer: Sr. VP & General Counsel 301 EAST FOURTH STREET, CINCINNATI OH 45202
Evans N Nwankwo director 301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202