First Advantage Corporation

NasdaqGS:FA Stock Report

Market Cap: US$3.0b

First Advantage Valuation

Is FA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FA ($18.25) is trading below our estimate of fair value ($38.53)

Significantly Below Fair Value: FA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for FA?

Key metric: As FA is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FA. This is calculated by dividing FA's market cap by their current revenue.
What is FA's PS Ratio?
PS Ratio4.2x
SalesUS$755.64m
Market CapUS$3.04b

Price to Sales Ratio vs Peers

How does FA's PS Ratio compare to its peers?

The above table shows the PS ratio for FA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
MAN ManpowerGroup
0.2x2.1%US$2.8b
NSP Insperity
0.4x5.1%US$2.7b
KFY Korn Ferry
1.4x4.1%US$3.9b
ALIT Alight
1.2x-8.5%US$4.1b
FA First Advantage
4.2x37.2%US$3.0b

Price-To-Sales vs Peers: FA is expensive based on its Price-To-Sales Ratio (4.2x) compared to the peer average (0.8x).


Price to Sales Ratio vs Industry

How does FA's PS Ratio compare vs other companies in the US Professional Services Industry?

26 CompaniesPrice / SalesEstimated GrowthMarket Cap
MAN ManpowerGroup
0.2x2.1%US$2.83b
CNXC Concentrix
0.3x3.2%US$2.42b
TIXT TELUS International (Cda)
0.4x3.1%US$961.19m
CNDT Conduent
0.2x-2.0%US$569.21m
FA 4.2xIndustry Avg. 1.4xNo. of Companies26PS01.63.24.86.48+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FA is expensive based on its Price-To-Sales Ratio (4.2x) compared to the US Professional Services industry average (1.4x).


Price to Sales Ratio vs Fair Ratio

What is FA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.2x
Fair PS Ratio9.8x

Price-To-Sales vs Fair Ratio: FA is good value based on its Price-To-Sales Ratio (4.2x) compared to the estimated Fair Price-To-Sales Ratio (9.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.25
US$21.40
+17.3%
2.3%US$22.00US$21.00n/a5
Nov ’25US$17.56
US$20.67
+17.7%
2.3%US$21.00US$20.00n/a3
Oct ’25US$19.85
US$20.50
+3.3%
2.4%US$21.00US$20.00n/a4
Sep ’25US$19.15
US$19.60
+2.3%
5.2%US$21.00US$18.00n/a5
Aug ’25US$17.03
US$19.00
+11.6%
6.1%US$21.00US$18.00n/a6
Jul ’25US$15.86
US$19.17
+20.8%
5.6%US$21.00US$18.00n/a6
Jun ’25US$16.06
US$19.17
+19.3%
5.6%US$21.00US$18.00n/a6
May ’25US$16.31
US$17.92
+9.9%
9.2%US$21.00US$15.50n/a6
Apr ’25US$16.08
US$18.08
+12.5%
9.4%US$21.00US$15.50n/a6
Mar ’25US$15.81
US$16.92
+7.0%
7.3%US$19.00US$15.50n/a6
Feb ’25US$16.64
US$16.28
-2.2%
9.3%US$20.00US$14.00n/a9
Jan ’25US$16.57
US$15.83
-4.4%
5.6%US$17.00US$14.00n/a9
Dec ’24US$15.93
US$15.83
-0.6%
5.6%US$17.00US$14.00n/a9
Nov ’24US$13.09
US$16.06
+22.7%
6.3%US$17.00US$14.00US$17.569
Oct ’24US$13.79
US$16.06
+16.4%
6.3%US$17.00US$14.00US$19.859
Sep ’24US$13.95
US$15.94
+14.2%
6.4%US$17.00US$14.00US$19.158
Aug ’24US$14.91
US$15.31
+2.7%
8.5%US$17.00US$13.00US$17.038
Jul ’24US$15.41
US$15.31
-0.6%
8.5%US$17.00US$13.00US$15.868
Jun ’24US$13.68
US$14.81
+8.3%
7.5%US$17.00US$13.00US$16.068
May ’24US$12.90
US$15.19
+17.7%
7.7%US$17.00US$13.00US$16.318
Apr ’24US$13.96
US$15.19
+8.8%
7.7%US$17.00US$13.00US$16.088
Mar ’24US$13.70
US$15.19
+10.9%
7.7%US$17.00US$13.00US$15.818
Feb ’24US$13.82
US$14.88
+7.6%
8.0%US$17.00US$13.00US$16.648
Jan ’24US$13.00
US$15.44
+18.8%
13.5%US$20.00US$13.00US$16.578
Dec ’23US$13.81
US$15.44
+11.8%
13.5%US$20.00US$13.00US$15.938
Nov ’23US$13.91
US$20.38
+46.5%
33.6%US$37.00US$13.00US$13.098

Analyst Forecast: Target price is less than 20% higher than the current share price.


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