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 83th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 823.5%. The most interesting components of our discounted cash flow analysis for American Financial Group Inc ended up being:
The compound growth rate in the free cash flow of American Financial Group Inc over the past 5.75 years is 0.18%; that's better than 63.79% of cash flow producing equities in the Financial Services sector, where it is classified.
American Financial Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.04% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of American Financial Group Inc? See GNW, OXSQ, AINC, AAME, and AMRK.
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
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced today that it priced an offering of $200 million aggregate principal amount of 4.50% Subordinated Debentures due September 15, 2060 (the “Debentures”). The offering is expected to close on September 15, 2020, subject to customary closing conditions. The Company intends to apply to list the Debentures on the New York Stock Exchange under the symbol “AFGE”. If approved for listing, trading of the Debentures on the N