FAF PE Ratio & Valuation, Is FAF Overvalued

Historical Valuation

First American Financial Corp (FAF) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.18 is considered Undervalued compared with the five-year average of 11.95. The fair price of First American Financial Corp (FAF) is between 60.83 to 76.97 according to relative valuation method. Compared to the current price of 58.11 USD , First American Financial Corp By Undervalued By 4.47%.

Relative Value

Fair Zone

60.83-76.97

Current Price：58.11

4.47%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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First American Financial Corp (FAF) has a current Price-to-Book (P/B) ratio of 1.17. Compared to its 3-year average P/B ratio of 1.26, the current P/B ratio is approximately -6.96% higher. Relative to its 5-year average P/B ratio of 1.28, the current P/B ratio is about -8.15% higher. First American Financial Corp (FAF) has a Forward Free Cash Flow (FCF) yield of approximately 11.31%. Compared to its 3-year average FCF yield of 6.63%, the current FCF yield is approximately 70.74% lower. Relative to its 5-year average FCF yield of 9.52%, the current FCF yield is about 18.91% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for FAF competitors is 2.72, providing a benchmark for relative valuation. First American Financial Corp Corp (FAF.N) exhibits a P/S ratio of 0.82, which is -70.01% above the industry average. Given its robust revenue growth of 18.44%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of FAF increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of FAF in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is FAF currently overvalued or undervalued?

First American Financial Corp (FAF) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.18 is considered Undervalued compared with the five-year average of 11.95. The fair price of First American Financial Corp (FAF) is between 60.83 to 76.97 according to relative valuation method. Compared to the current price of 58.11 USD, First American Financial Corp is Undervalued By 4.47%.

What is First American Financial Corp (FAF) fair value?

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. The fair price of First American Financial Corp (FAF) is between 60.83 to 76.97 according to relative valuation method.

How does FAF's valuation metrics compare to the industry average?

The average P/S ratio for FAF's competitors is 2.72, providing a benchmark for relative valuation. First American Financial Corp Corp (FAF) exhibits a P/S ratio of 0.82, which is -70.01% above the industry average. Given its robust revenue growth of 18.44%, this premium appears unsustainable.

What is the current P/B ratio for First American Financial Corp (FAF) as of Mar 25 2026?

As of Mar 25 2026, First American Financial Corp (FAF) has a P/B ratio of 1.17. This indicates that the market values FAF at 1.17 times its book value.

What is the current FCF Yield for First American Financial Corp (FAF) as of Mar 25 2026?

As of Mar 25 2026, First American Financial Corp (FAF) has a FCF Yield of 11.31%. This means that for every dollar of First American Financial Corp's market capitalization, the company generates 11.31 cents in free cash flow.

What is the current Forward P/E ratio for First American Financial Corp (FAF) as of Mar 25 2026?

As of Mar 25 2026, First American Financial Corp (FAF) has a Forward P/E ratio of 10.18. This means the market is willing to pay $10.18 for every dollar of First American Financial Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for First American Financial Corp (FAF) as of Mar 25 2026?

As of Mar 25 2026, First American Financial Corp (FAF) has a Forward P/S ratio of 0.82. This means the market is valuing FAF at $0.82 for every dollar of expected revenue over the next 12 months.

FAF Valuation