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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, American Financial Group has a Sloan Ratio of 2.12%, indicating the company is in the safe zone and there is no funny business with accruals.
American Financial Group (NYSE:AFG) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, American Financial Group has a Sloan Ratio of 2.12%, indicating the company is in the safe zone and there is no funny business with accruals.
American Financial Group Sloan Ratio % Related Terms
American Financial Group Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Financial Group's Sloan Ratio % falls into.
American Financial Group Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
American Financial Group's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
American Financial Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 174 (Jun. 2025 ) + 215 (Sep. 2025 ) + 299 (Dec. 2025 ) + 191 (Mar. 2026 ) = $879 Mil.
American Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 191 (Jun. 2025 ) + 216 (Sep. 2025 ) + 784 (Dec. 2025 ) + 474 (Mar. 2026 ) = $1,665 Mil.
American Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 36 (Jun. 2025 ) + -130 (Sep. 2025 ) + -764 (Dec. 2025 ) + -613 (Mar. 2026 ) = $-1,471 Mil.
* 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 (AFG) has a Sloan Ratio % of 2.12% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Financial Group and its competitors.
Is American Financial Group's Sloan Ratio % too high?
American Financial Group's current Sloan Ratio % is 2.12%. 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 Sloan Ratio % compare to CNA and ORI?
American Financial Group's Sloan Ratio % of 2.12% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Insurance company?
A good Sloan Ratio % depends on the Insurance industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Financial Group and its competitors. American Financial Group's current Sloan Ratio % is 2.12%. 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 $126.18, compared to a current price of $141.15 — trading 11.9% above its estimated fair value. The current Sloan Ratio % is 2.12%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For American Financial Group (AFG), the current Sloan Ratio % is 2.12% 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 $141.15 is trading 11.9% above its estimated GF Value™ of $126.18.
GuruFocus considers American Financial Group to be Modestly Overvalued.
Key valuation signals for AFG:
Sloan Ratio %: 2.12%
GF Value™: $126.18 vs. price of $141.15 (11.9% above fair value)
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.
80GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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