American Financial GroupAFG +1.44%79 Return-on-Tangible-Asset is 2.37% as of Mar. 2026, which is 17% above its 10-year median of 2.02. GuruFocus rates AFG with a GF Score™ of 79/100 and a GF Value™ of $126.76 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 509 Insurance companies, American Financial Group ranks worse than 50.29% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. American Financial Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $764 Mil. American Financial Group's average total tangible assets for the quarter that ended in Mar. 2026 was $32,171 Mil. Therefore, American Financial Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.37%.
The historical rank and industry rank for American Financial Group's Return-on-Tangible-Asset or its related term are showing as below:
AFG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.82 Med: 2.02 Max: 3.9
Current: 2.78
During the past 13 years, American Financial Group's highest Return-on-Tangible-Asset was 3.90%. The lowest was 0.82%. And the median was 2.02%.
AFG's Return-on-Tangible-Asset is ranked worse than 50.29% of 509
companies
in the Insurance industry
Industry Median: 2.79
vs AFG: 2.78
American Financial Group (NYSE:AFG) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
American Financial Group Return-on-Tangible-Asset Related Terms
American Financial Group Return-on-Tangible-Asset Historical Data
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The historical data trend for American Financial Group's Return-on-Tangible-Asset can be seen below:
* 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.
American Financial Group Return-on-Tangible-Asset Chart
AFG vs CNA, ORI, AIZ: Return-on-Tangible-Asset Comparison
For the Insurance - Property & Casualty subindustry, American Financial Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where American Financial Group's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.37% mean?
American Financial Group (AFG) has a Return-on-Tangible-Asset of 2.37% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Financial Group and its competitors. This is 17% above median its historical median of 2.02. Over the past decade, American Financial Group's Return-on-Tangible-Asset has ranged from 0.82 to 3.90. According to the industry distribution chart, American Financial Group ranks #256 out of 509 companies in the Insurance industry, placing it in the top 50.3%.
Is American Financial Group's Return-on-Tangible-Asset too high?
American Financial Group's current Return-on-Tangible-Asset of 2.37% is 17% above median its 10-year median of 2.02. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 3.90. The Insurance industry median Return-on-Tangible-Asset is 2.79. American Financial Group's value of 2.37% is 15.1% below this industry median. Based on the distribution chart, American Financial Group ranks #256 out of 509 companies in the Insurance industry, which is below the industry midpoint. Overall, American Financial Group has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's Return-on-Tangible-Asset compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #256 out of 509 companies for Return-on-Tangible-Asset. This places American Financial Group in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.79. American Financial Group's value of 2.37% is 15.1% below this benchmark. Historically, American Financial Group's own Return-on-Tangible-Asset has ranged from 0.82 to 3.90 over the past decade. While the company's 10-year median is 2.02 vs. the industry median of 2.79, American Financial Group has consistently been below 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 Return-on-Tangible-Asset for an Insurance company?
The median Return-on-Tangible-Asset among Insurance companies is 2.79, based on 509 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current Return-on-Tangible-Asset of 2.37% is 15.1% below 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Financial Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Asset is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current Return-on-Tangible-Asset is 2.37%, which is 17% above median its own 10-year median of 2.02. 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 $126.76, compared to a current price of $142.75 — trading 12.6% above its estimated fair value. The current Return-on-Tangible-Asset is 2.37%, which is 17% above median its 10-year median of 2.02 and 15.1% below the Insurance industry median of 2.79. American Financial Group's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For American Financial Group (AFG), the current Return-on-Tangible-Asset is 2.37% 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 $142.75 is trading 12.6% above its estimated GF Value™ of $126.76.
GuruFocus considers American Financial Group to be Modestly Overvalued.
Key valuation signals for AFG:
Return-on-Tangible-Asset: 2.37% (17% above median its 10-year median of 2.02)
GF Value™: $126.76 vs. price of $142.75 (12.6% above fair value)
Industry Position: 15.1% below the Insurance median (#256 of 509)
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.
79GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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