American Financial Group, Inc. provides property and casualty insurance products in the United States. It operates through four segments: Property and Casualty Insurance, Annuity, Run-Off Long-Term Care and Life, and Other. The company was founded in 1872 and is based in Cincinnati, Ohio.
AFG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for American Financial Group Inc. To summarize, we found that American Financial Group Inc ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 620.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for AFG, they are:
In the past 5.45 years, American Financial Group Inc has a compound free cash flow growth rate of 0.16%; that's higher than 61.38% of free cash flow generating stocks in the Financial Services sector.
American Financial Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 18.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AFG, try AMRK, AAME, ECPG, STC, and YUANF.
CINCINNATI--(BUSINESS WIRE)--It is with great sadness that the American Financial Group Board of Directors announces the sudden passing of longtime Board member Kenneth C. Ambrecht on Friday, September 25, 2020. Mr. Ambrecht was elected to AFG’s Board of Directors in 2005 and was a member of the Compensation and Corporate Governance Committees. He had extensive corporate finance experience, having worked in the U.S. capital markets for over 30 years. After a career in investment banking, he for
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today announced that it has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited (“RiverStone”). Upon closing of the sale, AFG expects release of all of its funds at Lloyd’s (FAL) including release of the letters of credit and collateral pledge facility that AFG guarantees in support of Neon
American Financial Group Inc. announced it has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Ltd. Upon closing of the sale, …
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the new $200 million 4.5% 40-year subordinated debentures, due 2060, of American Financial Group, Inc. (AFG) (Cincinnati, OH). The outlook assigned to this Credit Rating (rating) is stable. The existing ratings of AFG and its subsidiaries are unchanged. The proceeds of the sale are expected to be used for general corporate purposes, which may include the redemption of callable subord