American Financial GroupAFG -0.42%80 Return-on-Tangible-Equity is 17.28% as of Mar. 2026, which is 4% below its 10-year median of 18.02. GuruFocus rates AFG with a GF Scoreâ„¢ of 80/100 and a GF Valueâ„¢ of $127.30 (Fairly Valued). The stock has 4 warning signs investors should review. Among 502 Insurance companies, American Financial Group ranks better than 68.73% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. American Financial Group's annualized net income for the quarter that ended in Mar. 2026 was $764 Mil. American Financial Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,422 Mil. Therefore, American Financial Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.28%.
The historical rank and industry rank for American Financial Group's Return-on-Tangible-Equity or its related term are showing as below:
AFG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.65 Med: 18.02 Max: 35.06
Current: 20.4
During the past 13 years, American Financial Group's highest Return-on-Tangible-Equity was 35.06%. The lowest was 9.65%. And the median was 18.02%.
AFG's Return-on-Tangible-Equity is ranked better than 68.73% of 502
companies
in the Insurance industry
Industry Median: 13.515
vs AFG: 20.40
American Financial Group (NYSE:AFG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
American Financial Group Return-on-Tangible-Equity Related Terms
American Financial Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for American Financial Group's Return-on-Tangible-Equity 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-Equity Chart
AFG vs CNA, ORI, AIZ: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, American Financial Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where American Financial Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.28% mean?
American Financial Group (AFG) has a Return-on-Tangible-Equity of 17.28% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Financial Group and its competitors. This is near median its historical median of 18.02. Over the past decade, American Financial Group's Return-on-Tangible-Equity has ranged from 9.65 to 35.06. According to the industry distribution chart, American Financial Group ranks #157 out of 502 companies in the Insurance industry, placing it in the top 31.3%.
Is American Financial Group's Return-on-Tangible-Equity too high?
American Financial Group's current Return-on-Tangible-Equity of 17.28% is near median its 10-year median of 18.02. Over the past 10 years, this metric has ranged from a low of 9.65 to a high of 35.06. The Insurance industry median Return-on-Tangible-Equity is 13.52. American Financial Group's value of 17.28% is 27.9% above this industry median. Based on the distribution chart, American Financial Group ranks #157 out of 502 companies in the Insurance industry, which is above the industry midpoint. Overall, American Financial Group has a GF Scoreâ„¢ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's Return-on-Tangible-Equity compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #157 out of 502 companies for Return-on-Tangible-Equity. This puts American Financial Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.52. American Financial Group's value of 17.28% is 27.9% above this benchmark. Historically, American Financial Group's own Return-on-Tangible-Equity has ranged from 9.65 to 35.06 over the past decade. While the company's 10-year median is 18.02 vs. the industry median of 13.52, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 502 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 17.28% is 27.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Financial Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — 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-Equity is 17.28%, which is near median its own 10-year median of 18.02. 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 Fairly Valued. The stock's GF Value™ is $127.30, compared to a current price of $138.60 — trading 8.9% above its estimated fair value. The current Return-on-Tangible-Equity is 17.28%, which is near median its 10-year median of 18.02 and 27.9% above the Insurance industry median of 13.52. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For American Financial Group (AFG), the current Return-on-Tangible-Equity is 17.28% 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 $138.60 is trading 8.9% above its estimated GF Value™ of $127.30.
GuruFocus considers American Financial Group to be Fairly Valued.
Key valuation signals for AFG:
Return-on-Tangible-Equity: 17.28% (near median its 10-year median of 18.02)
GF Value™: $127.30 vs. price of $138.60 (8.9% above fair value)
Industry Position: 27.9% above the Insurance median (#157 of 502)
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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