First American Corporation (FAF) Fair Value & Analysis
Financial Services · US · Market cap $7.1B · ISIN US31847R1023
What is First American Corporation really worth?
First American Corporation
FAF · US
A solid business, but trading 19% above our fair value of $64.26.
Strengths
Risks
For context
Fair value as of: Sep 3, 2026
From 6 valuation models · updated yesterday
Share price +0.6% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.
How to read this chart
60‑month range $38.75 – $79.16 · fair‑value band $48.20 – $80.33 · the $76.51 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 Sep 3, 2026.
Analysis
First American Corporation (FAF) currently trades at $76.51, while our model-based Fair Value estimate is $64.26, implying the stock looks roughly 19.1% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of $75.56 per share, and 1 of the 6 models we run sit above the $76.51 price. Bear case: the Dividend Discount group reads lowest at $27.79, and 5 of the 6 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, First American 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 Sep 3, 2026
Our scenario range runs from $48.20 (bear case) to $80.33 (bull case); at $76.51, 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 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 27% fair-value upside, at −16%, FAF screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.93 per share, which is 4.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 6 models by family
Widest divergence: Multiples ($75.56) versus Dividend Discount ($27.79). Highest evidence: Residual Income (74).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 66 · Market factors (momentum, volatility) 63
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 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 % · buybacks/dilution +0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
FAF screens 19% overvalued. Compare with Fidelity National Financial, Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- First American's Housing Business Faces High Mortgage-Rate Pressure
- First American Title President Sally French Tyler Named a HousingWire Vanguard Award Winner for the Second Time
- Should Value Investors Buy First American Financial (FAF) Stock?
- Why First American Financial (FAF) is a Top Dividend Stock for Your Portfolio
Peer Group
Insurance - Specialty · 29 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
Strength profile in five axes (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: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Insurance - Specialty stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Fidelity National Financial, Inc FNF | $46.45 | $29.08 | −37% |
| AXIS Capital Holdings AXS | $99.80 | $139.49 | +40% |
| Enact Holdings ACT | $49.07 | $58.14 | +18% |
| MGIC Investment Corporation MTG | $31.29 | $39.71 | +27% |
| Essent Group ESNT | $69.27 | $91.14 | +32% |
| Radian Group RDN | $35.80 | $53.56 | +50% |
| Protector Forsikring ASA PROT | kr 480.40 | kr 273.28 | −43% |
| Assured Guaranty Ltd AGO | $74.46 | $148.92 | +100% |
| NMI Holdings NMIH | $44.80 | $56.53 | +26% |
| nib holdings limited, NHF | A$7.40 | A$3.56 | −52% |
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