First American FAF
United StatesFinancial Services · Insurance - SpecialtyUSD
86.33 USD (+40.9%)
6 analysts
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First American Corporation is a specialty insurer focused on title insurance and real estate settlement services, protecting buyers and lenders against defects in property ownership.
Key points
from its scores- ✓Strong growth8.4
- ✓Good share-price trend8.2
- ✓Attractive dividend7.8
- ✕Unfavourable risk and backdrop4.5
- !Average business quality5.6
AI analysis
bottom line, main risk, context and newsValuation is attractive and growth is strong, but regulatory risk in the sector and the 52-week range position (22nd percentile) suggest caution.
First American shows solid fundamentals: PER of 8.49 and adjusted P/B of 0.80 indicate attractive valuation, with earnings growth of 50.40% and operating margin of 15.57%, although ROE of 13.85% and net margin of 9.33% reflect moderate profitability.
The main risk is dependence on the real estate cycle and interest rates: a slowdown in home purchase activity would reduce premium income, and the strict regulatory environment in the U.S. adds legal uncertainty.
Context and risks
First American operates in the highly regulated U.S. title insurance sector, with state supervision and exposure to liability litigation in policy issuance. Regulatory risk is moderate and already reflected in the country's governance profile.
Is First American stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 39% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 8.5 | 13.7 | −38% |
| EV / EBITDA | 4.6 | 10.1 | −54% |
| Price / book | 1.1 | 1.9 | −40% |
| Price / sales | 0.8 | 3.5 | −77% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.6 out of 10 (median for Financial Services: 5.2).
Average analyst target: 86.33 USD, +40.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.4 (sector 5.5), Growth 8.4 (sector 6.9).
Classic formulas with standard assumptions (1.5% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 8.5
- Forward P/E
- 8.4
- EV / EBITDA
- 4.6
- Price / book
- 1.1
- Price / sales
- 0.8
- PEG
- 2.98
- Market cap
- 6.3B USD
- Enterprise value
- 6.3B USD
Profitability
- ROE
- 13.8%
- ROA
- 4.1%
- ROIC (approx.)
- 14.8%
- Gross margin
- 64.0%
- Operating margin
- 15.6%
- Net margin
- 9.3%
- Free cash flow
- 2.3B USD
- FCF yield
- 37.4%
- Cash conversion
- 171%
Solvency
- Total debt
- 2.8B USD
- Net debt
- 61.1M USD
- Cash
- 2.7B USD
- EBITDA
- 1.4B USD
- Net debt / EBITDA
- 0.04
- Debt / equity
- 49.42
- Current ratio
- 0.40
- Quick ratio
- 0.40
Growth
- Revenue growth
- +15.0%
- Earnings growth
- +50.4%
- EPS (TTM)
- 7.22 USD
- EPS (forward)
- 7.33 USD
Dividend
- Dividend yield
- 4.0%
- Payout
- 30.5%
Risk and market
- Beta
- 1.26
- Analyst consensus
- Strong buy (6)
- Target price
- 86.33 USD
- 52-week range
- 56.20 – 79.87
Recent news
All FAF news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about First American
Is First American stock cheap or expensive?
On P/E and Price / book, it trades 39% below the Financial Services median on average. Valuation score: 7.6 out of 10 (median for Financial Services: 5.2). Average analyst target: 86.33 USD, +40.9% versus the price. This is not investment advice.
What score does First American get on MeridIAn Screener?
It scores 6.6 out of 10, rank 440 of 2,130 (better than 77% of the companies analysed). Its strongest category is Growth (8.4) and its weakest, Risk & Context (4.5). Analysis of 08/10/2026.
What is First American's P/E ratio?
Its P/E is 8.5: the share price equals 8.5 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 8.4.
How much is First American worth on the stock market?
Its market capitalisation is 6.3B USD.
Does First American pay a dividend?
Yes: its dividend yield is 3.98% and it pays out 30% of its earnings.
How has First American stock performed over the last year?
It has risen 6.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 56.20 and 79.87 USD. Past performance does not guarantee future results.
What do analysts think of First American?
6 analysts cover it; their average recommendation is “Strong buy” and their average target is 86.33 USD (+40.9% versus the price). It is an estimate, not market data.