FAF

First American Financial Corporation

$0.00

-1.39%
Jul 2, 2026
Bobby Quantitative Model
First American Financial Corporation is a leading provider of title insurance, settlement services, and risk solutions for real estate transactions, operating primarily in the specialty insurance industry. As one of the largest title insurers in the United States, it holds a dominant market position with a comprehensive suite of services spanning residential and commercial real estate. The current investor narrative centers on the company's ability to navigate a fluctuating housing market, with attention on its revenue resilience amid changing interest rates and transaction volumes, as well as its strategic investments in digital solutions to enhance efficiency and customer experience.

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FAF 12-Month Price Forecast

Historical Price
Current Price $69.48
Average Target $69.48
High Target $79.90
Low Target $59.06

Wall Street consensus

Most Wall Street analysts maintain a constructive view on First American Financial Corporation's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.

Average Target

$0.00

1 analysts

Implied Upside

vs. current price

Analyst Count

1

covering this stock

Price Range

$0 - $0

Analyst target range

Buy
0 (0%)
Hold
0 (0%)
Sell
1 (100%)

Only 1 analyst covers FAF, with an average EPS estimate of $7.49 for the current year, ranging from $7.40 to $7.57. Revenue estimates average $8.58 billion, with a range of $8.52B to $8.63B. The limited coverage suggests FAF is a mid-cap stock with less institutional attention, which can lead to higher volatility and less efficient price discovery. The single analyst's estimates imply a forward PE of about 9.3x based on the current price, which is consistent with the forward PE of 9.67x. Without a price target or buy/sell/hold distribution, the consensus is unclear, but the low PE and positive earnings estimates suggest a potentially bullish outlook. The narrow range of EPS estimates indicates relatively high conviction, but the lack of multiple analysts means investors should exercise caution.

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FAF Technical Analysis

FAF is in a sustained uptrend over the past year, with a 1-year price change of +10.78%. The current price of $69.48 sits at 97.2% of its 52-week range (low $53.09, high $71.47), indicating the stock is near its highs, suggesting strong momentum but also potential overextension. This positioning near the top of the range reflects bullish sentiment and a possible breakout zone. Short-term momentum is accelerating, with a 1-month change of +6.56% and a 3-month change of +19.32%, both outpacing the longer-term trend. The 1-month relative strength versus SPY is +7.81%, confirming recent outperformance. This divergence from the 1-year trend suggests a strengthening uptrend rather than a pullback, though the rapid gain may invite profit-taking. The 52-week high of $71.47 acts as immediate resistance, while the 52-week low of $53.09 provides support. A breakout above $71.47 would signal continued upside, while a breakdown below $65.41 (recent June low) could indicate a correction. With a beta of 1.254, FAF is 25.4% more volatile than the market, meaning larger swings in both directions, which is important for risk management.

Beta

1.25

1.25x market volatility

Max Drawdown

-19.1%

Largest decline past year

52-Week Range

$53-$71

Price range past year

Annual Return

+10.8%

Cumulative gain past year

PeriodFAF ReturnS&P 500
1m+6.6%+1.0%
3m+19.3%+13.0%
6m+13.8%+7.7%
1y+10.8%+19.1%
ytd+13.8%+9.2%

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FAF Fundamental Analysis

Revenue trajectory appears stable, though specific quarterly figures are not provided. The company's net margin of 8.35% indicates profitability, and the gross margin of 95.61% reflects the high-margin nature of title insurance. The operating margin of 11.10% suggests efficient cost management. Net income is positive, with an EPS of $0.098 (likely quarterly), and the company is profitable. The ROE of 11.31% and ROA of 3.95% indicate decent returns on equity and assets, though not exceptional. The debt-to-equity ratio of 0.35 is low, indicating conservative leverage and strong financial health. Free cash flow data is not available, but the PCF ratio of 6.68 suggests the company generates sufficient cash relative to its price. The current ratio is not provided, but the low debt levels imply good liquidity. Overall, FAF appears financially stable with manageable debt and positive profitability.

Quarterly Revenue

N/A

N/A

Revenue YoY Growth

N/A

YoY Comparison

Gross Margin

N/A

Latest Quarter

Free Cash Flow

N/A

Last 12 Months

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Valuation Analysis: Is FAF Overvalued?

Since net income is positive, the PE ratio is the primary valuation metric. The trailing PE is 10.21x, while the forward PE is 9.67x, indicating the market expects earnings growth. The gap between trailing and forward PE suggests a modest growth expectation. Compared to the industry average (not provided), FAF's PE of 10.21x appears low relative to the broader market, but without industry data, a direct comparison is limited. The PS ratio of 0.85x and EV/Sales of 0.96x also suggest a reasonable valuation. Historical ratios are not available, but the current PE is likely near the lower end of its historical range given the stable business model. The PEG ratio of 0.027 is extremely low, implying significant undervaluation relative to growth, though this may be due to a high growth estimate. Overall, FAF appears undervalued on a PE basis, but further industry context is needed.

PE

10.2x

Latest Quarter

vs. Historical

N/A

5-Year PE Range 17x~59x

vs. Industry Avg

N/A

Industry PE ~N/A*

EV/EBITDA

5.7x

Enterprise Value Multiple