First American Corporation (FAF) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of First American Corporation stock $52.72, price $67.01, that is 21.3% below the price, quality 70 out of 100. Rating: overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $38.75 – $79.16 · fair‑value band $47.44 – $64.43 · the $67.01 price screens above the $52.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments.
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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.
Stock analysis
First American Corporation (FAF) currently trades at $67.01, while our model-based Fair Value estimate is $52.72, 21% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $64.13 per share, and 1 of the 6 models we run sit above the $67.01 price.
Bear case: the Asset-Based group reads lowest at $23.49, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: $47.44 (bear) to $64.43 (bull), the price of $67.01 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Financial Services sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
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.
Key figures
Market cap $6.9B Mid · P/E ratio 9.3 · P/S ratio 0.87 · EPS (TTM) $7.22 · Dividend yield 3.3% · Net margin 9.3% · Return on equity 13.9% · Return on assets (EBIT) 3.9% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 54 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at 11% fair-value upside, at −21%, FAF screens richer than that median.
Fair Value models
Bear$47.44Fair Value $52.72Bull$64.43
Price $67.01 · Downside -21.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($4.30 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $243,912 and none bought.
SaleSteven A AdamsVP & Chief Accounting Officer3,253 shares at $74.99$243,912Jul 24, 2026
SaleLisa W CornehlSVP, Chief Legal Officer5,823 shares at $68.63$399,665May 5, 2026
SaleMargaret M McCarthyDirector6,630 shares at $70.59$468,012Apr 24, 2026
BuyParker S KennedyDirector59,841 shares at $67.68$4.0MFeb 17, 2026
Plus 4 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+21.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.0%
Start year 2020 (pandemic). Over 10 years: +3.7% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+1.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−1.5%
Dividend (yield on the price)3.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−0.7% vs 8.6%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 11%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −1.2% a year for the price and +1.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The business holds a moderate position typical of title insurance but lacks any clear durable edge across factors, with evidence remaining too thin for firm conclusions.
Main risk: Fannie Mae and Freddie Mac pilots accepting automated reviews or attorney opinion letters instead of lender title policies could reduce demand for First American's core title insurance in refinance transactions and pressure volumes.
First American recently launched equiLite, a simplified title insurance policy aimed at home equity loans and lines of credit in 25 states. This targets faster, lower-friction coverage for smaller-balance lending at a time when residential transaction volumes remain soft. Our models see the stock as overvalued. Will this expansion into adjacent lending products generate meaningful new revenue streams, or will it stay marginal while the core business waits for a broader housing rebound?
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Peer Groupⓘ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.Insurance - Specialty · 23 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score70 · Above median
Fair Value upside−21.3% · Below median
Profitability
Return on equity (12 months)13.9% · Below median
Return on assets3.8% · Below median
Net margin (12 months)9.3% · Below median
Operating margin (12 months)15.6% · Below median
Growth and dividend
Revenue growth (quarter YoY)15.0% · Top 25%
Dividend yield (12 months)3.3% · Above median
Balance sheet
Debt / equity0.45× · Highest 25%
Valuation Multiplesvs Insurance - Specialty median · lower = cheaper
P/E (12 months)9.3× · Cheaper than median
P/B1.26× · Pricier than median
P/S (12 months)0.87× · Cheaper than median
Price / free cash flow (fiscal year)9.1× · Cheaper than median
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Cite: Fair Value Calculator (2026). "First American Corporation Fair Value". https://www.fairvalue-calculator.com/stock/FAF
Frequently asked questions
Is First American Corporation (FAF) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $52.72 versus a price of $67.01, about 21% lower (overvalued).
What is the fair value of FAF?
Our model-based fair value for First American Corporation is $52.72 (as of Nov 7, 2026), built from audited fundamentals. The current price: $67.01.
What is the quality score of FAF?
First American Corporation has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for First American Corporation (FAF)?
Our model-based price target is the fair value of $52.72 (as of Nov 7, 2026) from 6 valuation models. Cautious scenario $47.44, optimistic scenario $64.43. It is a calculation from audited fundamentals, not an analyst target.
What is the First American Corporation stock forecast for 2026?
Our models put fair value at $52.72, about 21% lower versus a price of $67.01 (overvalued). Cautious scenario $47.44, optimistic scenario $64.43. The calculation is refreshed regularly with new filings.
What is the revenue of First American Corporation (FAF)?
First American Corporation reported trailing-twelve-month revenue of about $8.0B (latest available figure, as of Nov 7, 2026).
Does First American Corporation pay a dividend?
First American Corporation currently shows a dividend yield of 3.28% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of First American Corporation (FAF) and when is the ex-dividend date?
First American Corporation pays a dividend of $2.20 per share a year, a dividend yield of 3.3%. The last ex-dividend date was Sep 28, 2026. A dividend has been paid every year since at least 2010. The payout ratio is 30.5% of earnings. Free cash flow covers the dividend 3.39 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into First American Corporation (FAF)?
For today's price to be fair in a discounted-cash-flow model, First American Corporation would have to grow free cash flow by +1.1 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.0 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of FAF use?
Our models discount First American Corporation at 10.4 %: a base by market capitalisation (mid), damped by beta 1.26, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For First American Corporation that is +1.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has First American Corporation (FAF) delivered so far?
Over the past 5 years revenue at First American Corporation grew +1.0 % a year. The price currently implies free-cash-flow growth of +1.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of First American Corporation (FAF) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into First American Corporation (+1.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of First American Corporation (FAF)?
The free-cash-flow yield on the price is 11.04 %: that much free cash flow First American Corporation produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of First American Corporation (FAF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For First American Corporation it is $52.72 per share (as of Nov 7, 2026), against a price of $67.01. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is First American Corporation stock overvalued or undervalued in 2026?
As of Nov 7, 2026, FAF trades above its calculated fair value: price $67.01, fair value $52.72, a gap of about −21% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FAF?
No. The price is what the market pays today ($67.01); the fair value is what the company's own numbers justify ($52.72). For First American Corporation the two are $14.29 per share apart. That gap is exactly why we show both numbers side by side.
How much is First American Corporation worth?
The market values First American Corporation at about $6.9B (market capitalisation, as of Nov 7, 2026). Per share that is $67.01; our models calculate a fair value of $52.72 per share.
What do the bullish and bearish scenarios say about FAF?
Our models span a range for First American Corporation: cautious scenario $47.44, base $52.72, optimistic $64.43 per share (as of Nov 7, 2026, price $67.01). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FAF?
First American Corporation trades at a price-to-earnings ratio of 9.3 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $52.72 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2020, FY2025 ex one-offs: 11.3. Other multiples: PEG 3.0, P/B 1.3, P/S 0.9, EV/EBITDA 5.8.
What is the PEG ratio of FAF?
The PEG ratio of First American Corporation is 2.98 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of First American Corporation (FAF)?
Balance-sheet figures for First American Corporation (as of Nov 7, 2026): return on equity 13.9%, debt of 0.45 per unit of equity. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is FAF from its 52-week high?
First American Corporation trades at $67.01, about 15% below its 52-week high of $79.16 and 19% above the low of $56.38 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $52.72 is for.
Which stocks are comparable to First American Corporation?
From the same area (Financial Services) we also value Fidelity National Financial, Inc, Medibank Private Limited, AXIS Capital Holdings, Enact Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is First American Corporation stock attractive at the current price?
The data as of Nov 7, 2026: price $67.01, calculated fair value $52.72 (−21%), Quality Score 70/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FAF calculated?
We run First American Corporation through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of $52.72 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. First American Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of First American Corporation (FAF)?
The closing price on Nov 6, 2026 was $67.01. Our model-based fair value is $52.72, about 21% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with First American Corporation right now?
The price sits above even our optimistic bull case ($64.43). The favourable scenario is already priced in. Solid but not exceptional quality (70/100) 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.
Where does the earnings growth of First American Corporation (FAF) come from?
Earnings per share at First American Corporation grew +1.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.3 %, EBIT margin −2.6 %, tax rate +1.3 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of First American Corporation
How large is the market capitalisation of First American Corporation (FAF)?
The market capitalisation of First American Corporation is $6.9B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of First American Corporation (FAF)?
The price-to-sales ratio of First American Corporation is 0.87 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of First American Corporation (FAF)?
Earnings per share at First American Corporation are $7.22 (price ÷ EPS = P/E 9.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of First American Corporation (FAF)?
The dividend yield of First American Corporation is 3.3% (payout 30.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of First American Corporation (FAF)?
The net margin of First American Corporation is 9.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of First American Corporation (FAF)?
The return on equity (ROE) of First American Corporation is 13.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of First American Corporation (FAF)?
On an EBIT basis the return on assets of First American Corporation is 3.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of First American Corporation (FAF)?
The operating margin of First American Corporation is 15.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at First American Corporation (FAF)?
Revenue at First American Corporation is growing +15.0% versus a year earlier (3y avg −0.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at First American Corporation (FAF)?
Earnings per share at First American Corporation are growing +50.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does First American Corporation (FAF) carry?
The net debt of First American Corporation is $519M (fiscal year 2025, ≈ 0.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026