FAF Valuation

First American Financial Corp

Add to Watchlist

Advanced Chart

62.140

-0.37(-0.592%)1D

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 Undervalued zone, suggesting that its current forward PE ratio of 10.16 is considered Undervalued compared with the five-year average of 11.69. The fair price of First American Financial Corp (FAF) is between 62.57 to 82.81 according to relative valuation methord. Compared to the current price of 62.51 USD , First American Financial Corp is Undervalued By 0.09%.

Relative Value

Fair Zone

62.57-82.81

Current Price：62.51

0.09%

Undervalued

10.16

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 6.47. The thresholds are as follows: Strongly Undervalued below 1.77, Undervalued between 1.77 and 4.12, Fairly Valued between 8.82 and 4.12, Overvalued between 8.82 and 11.17, and Strongly Overvalued above 11.17. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

6.65

EV/EBIT

First American Financial Corp. (FAF) has a current EV/EBIT of 6.65. The 5-year average EV/EBIT is 8.78. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 6.31, Fairly Valued between 11.25 and 6.31, Overvalued between 11.25 and 13.72, and Strongly Overvalued above 13.72. The current Forward EV/EBIT of 6.65 falls within the Historic Trend Line -Fairly Valued range.

62.51

First American Financial Corp. (FAF) has a current PS of 62.51. The 5-year average PS is 1.15. The thresholds are as follows: Strongly Undervalued below -6.61, Undervalued between -6.61 and -2.73, Fairly Valued between 5.02 and -2.73, Overvalued between 5.02 and 8.90, and Strongly Overvalued above 8.90. The current Forward PS of 62.51 falls within the Strongly Overvalued range.

0.00

P/OCF

First American Financial Corp. (FAF) has a current P/OCF of 0.00. The 5-year average P/OCF is 1.21. The thresholds are as follows: Strongly Undervalued below -4.05, Undervalued between -4.05 and -1.42, Fairly Valued between 3.83 and -1.42, Overvalued between 3.83 and 6.46, and Strongly Overvalued above 6.46. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued 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 11.90. The thresholds are as follows: Strongly Undervalued below 1.41, Undervalued between 1.41 and 6.66, Fairly Valued between 17.15 and 6.66, Overvalued between 17.15 and 22.39, and Strongly Overvalued above 22.39. 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 1.20. Compared to its 3-year average P/B ratio of 1.26 , the current P/B ratio is approximately -4.90% higher. Relative to its 5-year average P/B ratio of 1.27, the current P/B ratio is about -5.75% higher. First American Financial Corp (FAF) has a Forward Free Cash Flow (FCF) yield of approximately 11.06%. Compared to its 3-year average FCF yield of 6.81%, the current FCF yield is approximately 62.45% lower. Relative to its 5-year average FCF yield of 9.96% , the current FCF yield is about 11.02% lower.

1.20

P/B

Median3y

1.26

Median5y

1.27

11.06

FCF Yield

Median3y

6.81

Median5y

9.96

Competitors Valuation Multiple

The average P/S ratio for FAF's competitors is 57.68, providing a benchmark for relative valuation. First American Financial Corp Corp (FAF) exhibits a P/S ratio of 62.14, which is 7.74% above the industry average. Given its robust revenue growth of 40.56%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

FAF.N

First American Financial Corp

Old Republic International Corp

Stewart Information Services Corp

68.27

20.12%

1.92B

Performance Decomposition

Market capitalization of FAF decreased by 10.72% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.78 to 13.37.

The secondary factor is the Revenue Growth, contributed 40.56%to the performance.

Overall, the performance of FAF in the past 1 year is driven by P/E Change. Which is more unsustainable.

40.56%

1.41B → 1.98B

Revenue Growth

-230.79%

-7.34 → 9.60

Margin Expansion

179.51%

4.78 → 13.37

P/E Change

-10.72%