First Acceptance Corporation (FACO) Fair Value & Analysis
Financial Services · US · Market cap $198M
First Acceptance Corporation
FACO · US
Fair value as of: Jul 26, 2026
From 4 valuation models · updated 15 days ago
Share price +14.6% over the past month.
Below-average quality, screening 72% undervalued on our models.
What matters now
- The price is below even our cautious bear case ($7.99). The market is more pessimistic than our downside scenario.
- Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
- 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 Jul 26, 2026.
How to read this chart
60‑month range $0.4388 – $6.19 · fair‑value band $7.99 – $13.31 · the $6.19 price screens below the $10.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 26, 2026.
Analysis
First Acceptance Corporation (FACO) currently trades at $6.19, while our model-based Fair Value estimate is $10.65, implying the stock looks roughly 72.1% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, First Acceptance Corporation generated revenue of $506M at a net margin of 6.0%. Revenue declined 13.9% year over year. It earns a return on equity of 16.4%. The stock trades on a trailing P/E of 5.7. Fundamentals as of Jul 26, 2026
Our scenario range runs from $7.99 (bear case) to $13.31 (bull case); at $6.19, the current price sits below 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 97% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 46% fair-value upside, at 72%, FACO screens cheaper 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 4 models by family
Widest divergence: Multiples ($7.58) versus Asset-Based ($3.63). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 26, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 47 · Market factors (momentum, volatility) 87
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 Acceptance Corporation, together with its subsidiaries, operates as an insurance holding company that underwrites non-standard personal automobile insurance and related products in the United States.
Full company description
First Acceptance Corporation, together with its subsidiaries, operates as an insurance holding company that underwrites non-standard personal automobile insurance and related products in the United States. The company issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. It also underwrites auto insurance, renters insurance, life insurance, as well as roadside assistance. The company primarily distributes its products through its retail locations. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
First Acceptance Corporation reported revenue of $506M in FY2025 versus $285M in FY2021, a compound +15.4%/yr. Reported net income was $30.2M in FY2025.
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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.
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 Jul 26, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Fidelity National Financial, Inc FNF | $49.53 | $29.08 | -41% |
| AXIS Capital Holdings AXS | $114.62 | $177.90 | +55% |
| First American Financial Corporation FAF | $70.06 | $79.33 | +13% |
| Enact Holdings ACT | $46.52 | $62.79 | +35% |
| MGIC Investment Corporation MTG | $29.47 | $45.39 | +54% |
| Essent Group ESNT | $66.71 | $97.33 | +46% |
| Radian Group RDN | $39.14 | $56.98 | +46% |
| Protector Forsikring ASA PROT | kr 485.80 | kr 418.04 | -14% |
| Assured Guaranty Ltd AGO | $82.49 | $147.67 | +79% |
| NMI Holdings NMIH | $41.16 | $66.55 | +62% |
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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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