FAF Relative Valuation
FAF'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, FAF is overvalued; if below, it's undervalued.
Historical Valuation
First American Financial Corp (FAF) is now in the Fair zone, suggesting that its current forward PE ratio of 10.70 is considered Fairly compared with the five-year average of 11.71. The fair price of First American Financial Corp (FAF) is between 62.06 to 81.69 according to relative valuation methord.
Relative Value
Fair Zone
62.06-81.69
Current Price：64.79
Fair
10.70
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
First American Financial Corp. (FAF) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 6.36. The thresholds are as follows: Strongly Undervalued below 1.33, Undervalued between 1.33 and 3.84, Fairly Valued between 8.88 and 3.84, Overvalued between 8.88 and 11.39, and Strongly Overvalued above 11.39. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
6.90
EV/EBIT
First American Financial Corp. (FAF) has a current EV/EBIT of 6.90. The 5-year average EV/EBIT is 8.77. The thresholds are as follows: Strongly Undervalued below 3.88, Undervalued between 3.88 and 6.32, Fairly Valued between 11.22 and 6.32, Overvalued between 11.22 and 13.66, and Strongly Overvalued above 13.66. The current Forward EV/EBIT of 6.90 falls within the Historic Trend Line -Fairly Valued range.
0.86
PS
First American Financial Corp. (FAF) has a current PS of 0.86. The 5-year average PS is 0.90. The thresholds are as follows: Strongly Undervalued below 0.69, Undervalued between 0.69 and 0.80, Fairly Valued between 1.00 and 0.80, Overvalued between 1.00 and 1.10, and Strongly Overvalued above 1.10. The current Forward PS of 0.86 falls within the Historic Trend Line -Fairly Valued range.
7.77
P/OCF
First American Financial Corp. (FAF) has a current P/OCF of 7.77. The 5-year average P/OCF is 1.39. The thresholds are as follows: Strongly Undervalued below -4.28, Undervalued between -4.28 and -1.44, Fairly Valued between 4.22 and -1.44, Overvalued between 4.22 and 7.06, and Strongly Overvalued above 7.06. The current Forward P/OCF of 7.77 falls within the Strongly Overvalued range.
0.00
P/FCF
First American Financial Corp. (FAF) has a current P/FCF of 0.00. The 5-year average P/FCF is 11.71. The thresholds are as follows: Strongly Undervalued below 0.71, Undervalued between 0.71 and 6.21, Fairly Valued between 17.20 and 6.21, Overvalued between 17.20 and 22.70, and Strongly Overvalued above 22.70. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
First American Financial Corp (FAF) has a current Price-to-Book (P/B) ratio of 1.25. Compared to its 3-year average P/B ratio of 1.26 , the current P/B ratio is approximately -1.41% higher. Relative to its 5-year average P/B ratio of 1.28, the current P/B ratio is about -2.39% higher. First American Financial Corp (FAF) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.79%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 9.87% , the current FCF yield is about -100.00% lower.
1.25
P/B
Median3y
1.26
Median5y
1.28
10.67
FCF Yield
Median3y
6.79
Median5y
9.87
Competitors Valuation Multiple
The average P/S ratio for FAF's competitors is , providing a benchmark for relative valuation. First American Financial Corp Corp (FAF) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 43.09%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of FAF increased by 3.76% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.78 to 13.94.
The secondary factor is the Revenue Growth, contributed 43.09%to the performance.
Overall, the performance of FAF in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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