First American Corporation (FAF) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
First American Corporation stock (FAF) is currently trading at $58.36. First American Corporation PE ratio is 9.69. First American Corporation PS ratio (Price-to-Sales) is 0.80. Analyst consensus price target for FAF is $81.60. WallStSmart rates FAF as Moderate Buy.
- FAF PE ratio analysis and historical PE chart
- FAF PS ratio (Price-to-Sales) history and trend
- FAF intrinsic value — DCF, Graham Number, EPV models
- FAF stock price prediction 2025 2026 2027 2028 2029 2030
- FAF fair value vs current price
- FAF insider transactions and insider buying
- Is FAF undervalued or overvalued?
- First American Corporation financial analysis — revenue, earnings, cash flow
- FAF Piotroski F-Score and Altman Z-Score
- FAF analyst price target and Smart Rating
First American Corporation
📊 No data available
Try selecting a different time range
FAF Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · First American Corporation (FAF)
FAF trades at a significant discount to its Graham intrinsic value of $280.80, offering a 77% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
First American Corporation (FAF) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book, revenue growth. Overall metrics suggest strong investment potential with favorable risk/reward.
First American Corporation (FAF) Key Strengths (6)
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 194.50% year-over-year
97.36% of shares held by major funds and institutions
Trading at 1.05x book value, attractively priced
Strong revenue growth at 21.60% annually
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
First American Corporation (FAF) Areas to Watch (4)
Paying a premium for growth, expensive relative to earnings expansion
Thin profit margins with limited profitability
Moderate profitability with room for improvement
Decent operational efficiency, solid but not exceptional
First American Corporation (FAF) Detailed Analysis Report
Overall Assessment
This company scores 72/100 in our Smart Analysis, earning a B grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.8/10) while 4 fall into concern territory (avg 4.8/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on Price/Sales, EPS Growth, Institutional Own.. Valuation metrics including Price/Sales (0.80), Price/Book (1.05) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 21.60%, EPS Growth at 194.50%.
The Bear Case
The primary concerns are PEG Ratio, Profit Margin, Return on Equity. Some valuation metrics including PEG Ratio (2.04) suggest expensive pricing. Profitability pressure is visible in Return on Equity at 12.00%, Operating Margin at 16.20%, Profit Margin at 8.34%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 12.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 21.60% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Price/Sales and EPS Growth makes a compelling case at current levels. The key risk is PEG Ratio, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
FAF Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
FAF's Price-to-Sales ratio of 0.80x sits near its historical average of 0.76x (53th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 33% below its historical high of 1.19x set in Nov 2024, and 194% above its historical low of 0.27x in Nov 2011. Over the past 12 months, the PS ratio has compressed from ~1.1x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for First American Corporation (FAF) · FINANCIAL SERVICES › INSURANCE - SPECIALTY
The Big Picture
First American Corporation is a strong growth company balancing expansion with improving profitability. Revenue reached 7.5B with 22% growth year-over-year. Profit margins are thin at 8.3%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 325M in free cash flow and 369M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can First American Corporation push profit margins above 15% as the business scales?
Growth sustainability: can First American Corporation maintain 22%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 3.8%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor INSURANCE - SPECIALTY industry trends, competitive moves, and regulatory changes that could impact First American Corporation.
Bottom Line
First American Corporation offers an attractive blend of growth (22% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Loading insider activity...
About First American Corporation(FAF)
NYSE
FINANCIAL SERVICES
INSURANCE - SPECIALTY
USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.