Is First American Financial Corporation (FAF) Overvalued?
We dive into why First American Financial Corporation (FAF) could be considered overvalued on 2026-07-24, based on AAII’s Value Score and Grade.Tudor Pop
Stock Evaluator: First American Financial Corporation (FAF)
First American Financial Corporation FAF
$62.49
0.98
1.59%
October 2, 2026 4:00:03 PM
EST
Volume: 916,011
After Hours: $120.37
0.15
|
0.12%
November 10, 2021 7:59 PM
EST
Volume: 72,713
USD
NYSE | DELAYED PRICE
| SECTOR | INDUSTRY |
| Financials | Insurance |
A+ Stock Grade Summary:
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COMPANY SUMMARY
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. 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.
Commentary & Analysis
Why First American Financial Corporation’s (FAF) Stock Is Up 5.33%
As of Friday, July 24, First American Financial Corporation’s FAF share price has surged by 5.33%, which has investors questioning if this is right time to sell.Jenna Brashear
What You Need to Know About First American Financial Corporation's Q3 Earnings
First American Financial Corporation's fiscal Q3 earnings report was released on Wednesday, July 22. Let's dive in to see if (FAF) missed or beat analyst's expectations.Tudor Pop
Which Is a Better Investment, First American Financial Corporation or Horace Mann Educators Corporation Stock?
Learn more about whether First American Financial Corporation or Horace Mann Educators Corporation is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Rosalio Madrigal
5 Undervalued Insurance Stocks for Wednesday, June 10
Discover the top 5 undervalued Insurance stocks for Wednesday, June 10 based on AAII’s Stock Grades.Rosalio Madrigal
Financial Summary
| Share Statistics | FAF | Industry Median |
Percentile (All Stocks) |
|
| Market Cap (Mil) | $6,380.2 | $5,664.6 | 72% |
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| Shares Out (Mil) | 103.0 | 78.9 | 63% |
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| Institutional Ownership | 96.8% | 80.0% | 71% |
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| Float (Mil) | 98.8 | 69.9 | 60% |
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| Beta | 1.25 | 0.50 | 73% |
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| Avg Daily Volume (000s) | 1,114 | 251 | 71% |
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| Price Change (52-week) |
(2.2%) | 85.7% | 50% |
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| Growth | FAF | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 1.0% | 5.5% | 20% |
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| Net Income (5yr) | (2.2%) | 14.3% | 37% |
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| EPS (5yr) | (0.5%) | 15.5% | 31 |
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| Dividends (5yr) | 4.1% | 3.9% | 91% |
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| Cash Flow (5yr) | (11.3%) | (12.2%) | 57% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 6 | 5 | 6 | |
| Current EPS | $1.890 | $7.142 | $7.388 | |
| Month Ago EPS | $1.890 | $7.142 | $7.388 | |
| # Rev Up | 0 | 1 | 0 | |
| # Rev Down | 2 | 0 | 1 | |
| Three Months Ago EPS | $1.821 | $6.813 | $7.183 | |
| Year/Year Chg | (10.8%) | 19.0% | 31.5% | |
| Financials | FAF | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $7,984 | $4,647 | 81% |
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| Net Income (TTM) (Mil) | $745 | $551 | 83% |
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| EPS (TTM) | $7.245 | $2.500 | 91% |
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| Operating Cash Flow (TTM) (Mil) | $1,004 | $562 | 80% |
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| Net Cash Flow (TTM) (Mil) | $594 | $5 | 92% |
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| Long-Term Debt (Q1) (Mil) | $1,753 | $859 | 72% |
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| Enterprise Value (Q1) (Mil) | $7,858 | $6,996 | 70% |
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| Valuation | FAF | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.13 | 1.52 | 28% |
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| P/E | 8.7 | 11.5 | 13% |
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| Dividend Yield | 3.5% | 1.1% | 87% |
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| PEG (5yr hist) | na | 0.5 | na |
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| Ratios | FAF | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 64.0% | 35.4% | 76% |
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| Net Margin | 9.3% | 10.4% | 60% |
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| ROA | 4.2% | 2.7% | 68% |
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| ROE | 13.9% | 14.7% | 68% |
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| Liabilities to Assets | 70.2% | 77.0% | 65% |
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| F-Score | 9 | 6 | 98% |
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Passing Stock Screens
As of 10/2/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Utility) Screen
Factors: Yield, Value, Quality, Industry/Sector
Graham's approach leads to three separate screens that focus on the concept of intrinsic value, justified by a firm's financial strength.
| Performance Since Inception: | 6.7% |
| +/- S&P 500: | -0.8 |
FACTOR STRATEGY
Dividend (High Relative Yield) Screen
Factors: Yield, Value, Growth
Using the dividend-yield approach to invest during volatile markets.
| Performance Since Inception: | 8.8% |
| +/- S&P 500: | +1.3 |
GURU STRATEGY
Dreman Screen
Factors: Value, Growth
Avoiding the psychological traps of the market by following the principles of contrarian investing.
| Performance Since Inception: | 8.3% |
| +/- S&P 500: | +0.8 |
