First American Financial Corporation (FAF) Fair Value & Analysis
Financial Services · US · Market cap $7.1B
First American Financial Corporation
FAF · US
Fair value as of: Aug 13, 2026
From 6 valuation models · updated yesterday
Fair value updated Aug 13, 2026, revised from $79.33 to $64.26 (−19.0%) since Jul 14, 2026. Share price +6.2% over the past month.
A solid business, but screening 13% overvalued on our models.
What matters now
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
- Our model range runs from $48.20 (bear) to $80.33 (bull), base $64.26. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 70/100 (solid quality) with high evidence: the data supports the verdict.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $38.75 – $79.16 · fair‑value band $48.20 – $80.33 · the $74.06 price screens above the $64.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
First American Financial Corporation (FAF) currently trades at $74.06, while our model-based Fair Value estimate is $64.26, implying the stock looks roughly 13.2% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, First American Financial Corporation generated revenue of $7.7B at a net margin of 8.7%. Revenue grew 16.2% year over year. It earns a return on equity of 12.8%. Net debt stands at $519M. Fundamentals as of Aug 13, 2026
Our scenario range runs from $48.20 (bear case) to $80.33 (bull case); at $74.06, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 43% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 30% fair-value upside, at -13%, FAF screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 6 models by family
Widest divergence: Multiples ($75.56) versus Dividend Discount ($27.79). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 66 · Market factors (momentum, volatility) 62
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally.
Full company description
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; appraisals and other valuation-related products and services; lien release, document custodial, and default-related products and services; document generation services; warehouse lending services; and subservices mortgage loans; as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in various states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Home Warranty segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in various states and the District of Columbia. First American Financial Corporation was founded in 1889 and is based in Santa Ana, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
First American Financial Corporation reported revenue of $7.4B in FY2025 versus $9.2B in FY2021, a compound −5.2%/yr. Reported net income was $622M in FY2025, compounding −15.9%/yr from FY2021.
of which total revenue +2.7 pp · buybacks/dilution +0.6 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
FAF screens 13% overvalued. Compare with Fidelity National Financial, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- FAF Stock Trading at a Discount to Industry at 1.30X: Time to Hold?
- First American Financial (FAF) Could Be a Great Choice
- CORRECTION: CryptEscrow Available to Policy-Issuing Agents of First American Title as Optional Cryptocurrency-to-Cash Conversion Service for
Peer Group
Insurance - Specialty · 32 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Insurance - Specialty median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 66/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Insurance - Specialty stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Fidelity National Financial, Inc FNF | $47.67 | $29.08 | -39% |
| Medibank Private Limited MPL | A$5.13 | A$1.65 | -68% |
| AXIS Capital Holdings AXS | $100.72 | $139.49 | +38% |
| Enact Holdings ACT | $49.38 | $58.14 | +18% |
| MGIC Investment Corporation MTG | $30.64 | $39.71 | +30% |
| Essent Group ESNT | $68.28 | $91.14 | +33% |
| Radian Group RDN | $36.44 | $53.56 | +47% |
| Protector Forsikring ASA PROT | kr 480.40 | kr 273.28 | -43% |
| Assured Guaranty Ltd AGO | $74.76 | $149.52 | +100% |
| NMI Holdings NMIH | $44.88 | $56.53 | +26% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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