FA Valuation

First Advantage Corp

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15.730

-0.9(-5.412%)1D

Overview
Forecast
Valuation
Earnings

FA Relative Valuation

FA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, FA is overvalued; if below, it's undervalued.

Historical Valuation

First Advantage Corp (FA) is now in the Fair zone, suggesting that its current forward PE ratio of 15.54 is considered Fairly compared with the five-year average of 16.92. The fair price of First Advantage Corp (FA) is between 13.44 to 20.40 according to relative valuation methord.

Relative Value

Fair Zone

13.44-20.40

Current Price：16.14

Fair

15.16

Trailing

Forward

11.16

EV/EBITDA

First Advantage Corp. (FA) has a current EV/EBITDA of 11.16. The 5-year average EV/EBITDA is 10.91. The thresholds are as follows: Strongly Undervalued below 5.37, Undervalued between 5.37 and 8.14, Fairly Valued between 13.67 and 8.14, Overvalued between 13.67 and 16.44, and Strongly Overvalued above 16.44. The current Forward EV/EBITDA of 11.16 falls within the Historic Trend Line -Fairly Valued range.

24.26

EV/EBIT

First Advantage Corp. (FA) has a current EV/EBIT of 24.26. The 5-year average EV/EBIT is 26.33. The thresholds are as follows: Strongly Undervalued below -0.26, Undervalued between -0.26 and 13.04, Fairly Valued between 39.63 and 13.04, Overvalued between 39.63 and 52.92, and Strongly Overvalued above 52.92. The current Forward EV/EBIT of 24.26 falls within the Historic Trend Line -Fairly Valued range.

1.84

First Advantage Corp. (FA) has a current PS of 1.84. The 5-year average PS is 2.86. The thresholds are as follows: Strongly Undervalued below 1.31, Undervalued between 1.31 and 2.09, Fairly Valued between 3.64 and 2.09, Overvalued between 3.64 and 4.41, and Strongly Overvalued above 4.41. The current Forward PS of 1.84 falls within the Undervalued range.

11.37

P/OCF

First Advantage Corp. (FA) has a current P/OCF of 11.37. The 5-year average P/OCF is 13.99. The thresholds are as follows: Strongly Undervalued below 9.20, Undervalued between 9.20 and 11.60, Fairly Valued between 16.38 and 11.60, Overvalued between 16.38 and 18.78, and Strongly Overvalued above 18.78. The current Forward P/OCF of 11.37 falls within the Undervalued range.

14.84

P/FCF

First Advantage Corp. (FA) has a current P/FCF of 14.84. The 5-year average P/FCF is 16.92. The thresholds are as follows: Strongly Undervalued below 9.46, Undervalued between 9.46 and 13.19, Fairly Valued between 20.66 and 13.19, Overvalued between 20.66 and 24.39, and Strongly Overvalued above 24.39. The current Forward P/FCF of 14.84 falls within the Historic Trend Line -Fairly Valued range.

First Advantage Corp (FA) has a current Price-to-Book (P/B) ratio of 2.23. Compared to its 3-year average P/B ratio of 2.28 , the current P/B ratio is approximately -2.50% higher. Relative to its 5-year average P/B ratio of 2.33, the current P/B ratio is about -4.43% higher. First Advantage Corp (FA) has a Forward Free Cash Flow (FCF) yield of approximately 0.42%. Compared to its 3-year average FCF yield of 6.85%, the current FCF yield is approximately -93.86% lower. Relative to its 5-year average FCF yield of 6.37% , the current FCF yield is about -93.39% lower.

2.18

P/B

Median3y

2.28

Median5y

2.33

0.42

FCF Yield

Median3y

6.85

Median5y

6.37

Competitors Valuation Multiple

The average P/S ratio for FA's competitors is 1.46, providing a benchmark for relative valuation. First Advantage Corp Corp (FA) exhibits a P/S ratio of 1.84, which is 26.23% above the industry average. Given its robust revenue growth of 111.67%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PagSeguro Digital Ltd

Brookfield Business Partners LP

Performance Decomposition

Market capitalization of FA decreased by 17.86% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 184.55M to 390.63M.

The secondary factor is the P/E Change, contributed -37.45%to the performance.

Overall, the performance of FA in the past 1 year is driven by Revenue Growth. Which is more sustainable.

111.67%

184.55M → 390.63M

Revenue Growth

-92.08%

1.01 → 0.08

Margin Expansion

-37.45%

-28.35 → -17.73

P/E Change

-17.86%