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American Financial Group (American Financial Group) PS Ratio : 1.40 (As of Apr. 26, 2024)


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What is American Financial Group PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, American Financial Group's share price is $127.34. American Financial Group's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $91.19. Hence, American Financial Group's PS Ratio for today is 1.40.

The historical rank and industry rank for American Financial Group's PS Ratio or its related term are showing as below:

AFG' s PS Ratio Range Over the Past 10 Years
Min: 0.76   Med: 1.29   Max: 2.05
Current: 1.41

During the past 13 years, American Financial Group's highest PS Ratio was 2.05. The lowest was 0.76. And the median was 1.29.

AFG's PS Ratio is ranked worse than
64.54% of 485 companies
in the Insurance industry
Industry Median: 1.05 vs AFG: 1.41

American Financial Group's Revenue per Sharefor the three months ended in Dec. 2023 was $24.86. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $91.19.

Good Sign:

American Financial Group Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of American Financial Group was 14.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 12.80% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 2.90% per year.

During the past 13 years, American Financial Group's highest 3-Year average Revenue per Share Growth Rate was 25.00% per year. The lowest was -19.00% per year. And the median was 3.90% per year.

Back to Basics: PS Ratio


American Financial Group PS Ratio Historical Data

The historical data trend for American Financial Group's PS Ratio 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.

* Premium members only.

American Financial Group PS Ratio Chart

American Financial Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.63 1.38 1.89 1.73 1.30

American Financial Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.73 1.48 1.38 1.26 1.30

Competitive Comparison of American Financial Group's PS Ratio

For the Insurance - Property & Casualty subindustry, American Financial Group's PS Ratio, along with its competitors' market caps and PS 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's PS Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, American Financial Group's PS Ratio distribution charts can be found below:

* The bar in red indicates where American Financial Group's PS Ratio falls into.



American Financial Group PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

American Financial Group's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=127.34/91.186
=1.40

American Financial Group's Share Price of today is $127.34.
American Financial Group's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $91.19.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


American Financial Group  (NYSE:AFG) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


American Financial Group PS Ratio Related Terms

Thank you for viewing the detailed overview of American Financial Group's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


American Financial Group (American Financial Group) Business Description

Traded in Other Exchanges
Address
301 East Fourth Street, Cincinnati, OH, USA, 45202
American Financial Group Inc is a holding company that is engaged primarily in property and casualty insurance services. The company has a focus on specialized commercial products for businesses. American also has annuity operations that are focused on sales of traditional fixed and fixed-indexed annuities in the education, bank, and individual markets. American's insurance operations are conducted through the Great American Insurance Group. The group writes business in all 50 of the United States, primarily through independent agents and brokers.
Executives
Amy Y Murray director 3429 ARNOLD STREET, CINCINNATI OH 45202
William W Verity director 301 EAST FOURTH STREET, CINCINNATI OH 45202
Terry S Jacobs director 301 EAST FOURTH STREET, CINCINNATI OH 45202
Von Lehman John I director 301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
John B Berding director 301 E. FOURTH ST., 27TH FLOOR, CINCINNATI OH 45202
Mark A Weiss officer: Senior VP & General Counsel 301 EAST FOURTH STREET, CINCINNATI OH 45202
Michelle A Gillis officer: Sr. Vice President 301 E. FOURTH STREET, 39TH FLOOR, CINCINNATI OH 45202
Brian S. Hertzman other: principal financial officer 301 EAST FOURTH STREET, CINCINNATI OH 45202
Thompson David Lawrence Jr officer: President of Subsidiary 301 EAST FOURTH STREET, CINCINNATI OH 45202
James E Evans director, officer: Sr. V. Pres. & Gen. Counsel 301 E FOURTH STREET, CINCINNATI OH 45202
Lindner Carl H Iii director, officer: Co-President 14TH FLOOR PROVIDENT TOWER, ONE EAST FOURTH STREET, CINCINNATI OH 45202
S Craig Lindner director, officer: Co-President ONE EAST FOURTH STREET, CINCINNATI OH 45202
Vito C Peraino officer: Sr. VP & General Counsel 301 EAST FOURTH STREET, CINCINNATI OH 45202
Evans N Nwankwo director 301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
Kenneth C Ambrecht director 250 EAST FIFTH STREET, CINCINNATI OH 45202