American Financial Group, Inc.

AFGD ·Financial, Insurance - Property & Casualty, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $20.57
Market Price $22.25
Overvalued By 8.2%

Method: PV of remaining cash flows for American Financial Group's 5.625% Subordinated Debentures due 6/1/2060 (par $25, quarterly coupon $0.351563): approximately 135 quarterly periods remaining (T=33.7 years), discount rate 7.0% (quarterly 1.75%), the same BBB+ subordinated-debt yield assumption used across the AFG debenture series, cross-checked against the last observed price of $20.52 and a 6.85% current yield; PV of coupons=$18.16, PV of $25 redemption at maturity=$2.40; total=$20.57.

Reasoning: Same rationale as AFGC and AFGE: a $25-par subordinated debenture past its first call date but trading below par, valued as PV of coupons plus terminal par to the stated 2060 maturity; the computed value is very close to the last observed market price, validating the discount-rate assumption.