First American Financial Valuation
Is FAF undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of FAF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FAF ($65.39) is trading above our estimate of fair value ($28.14)
Significantly Below Fair Value: FAF is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FAF?
Key metric: As FAF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is FAF's PE Ratio? | |
|---|---|
| PE Ratio | 72.6x |
| Earnings | US$92.80m |
| Market Cap | US$6.69b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.1x |
| Enterprise Value/EBITDA | 15x |
| PEG Ratio | 0.9x |
Price to Earnings Ratio vs Peers
How does FAF's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 13.7x | ||
ORI Old Republic International | 10.1x | -6.2% | US$9.4b |
AXS AXIS Capital Holdings | 11.7x | 14.6% | US$7.3b |
KMPR Kemper | 16.6x | 16.9% | US$4.6b |
THG Hanover Insurance Group | 16.2x | 18.0% | US$5.9b |
FAF First American Financial | 72.6x | 80.0% | US$6.7b |
Price-To-Earnings vs Peers: FAF is expensive based on its Price-To-Earnings Ratio (72.6x) compared to the peer average (13.7x).
Price to Earnings Ratio vs Industry
How does FAF's PE Ratio compare vs other companies in the US Insurance Industry?
Price-To-Earnings vs Industry: FAF is expensive based on its Price-To-Earnings Ratio (72.6x) compared to the US Insurance industry average (13.1x).
Price to Earnings Ratio vs Fair Ratio
What is FAF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 72.6x |
| Fair PE Ratio | 54.9x |
Price-To-Earnings vs Fair Ratio: FAF is expensive based on its Price-To-Earnings Ratio (72.6x) compared to the estimated Fair Price-To-Earnings Ratio (54.9x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$65.39 | US$76.40 +16.8% | 6.2% | US$84.00 | US$72.00 | n/a | 5 |
| Nov ’25 | US$62.78 | US$76.40 +21.7% | 6.2% | US$84.00 | US$72.00 | n/a | 5 |
| Oct ’25 | US$65.90 | US$68.80 +4.4% | 8.6% | US$79.00 | US$61.00 | n/a | 5 |
| Sep ’25 | US$63.80 | US$66.20 +3.8% | 4.5% | US$70.00 | US$61.00 | n/a | 5 |
| Aug ’25 | US$60.26 | US$66.20 +9.9% | 4.5% | US$70.00 | US$61.00 | n/a | 5 |
| Jul ’25 | US$53.38 | US$65.80 +23.3% | 3.5% | US$70.00 | US$63.00 | n/a | 5 |
| Jun ’25 | US$55.58 | US$66.60 +19.8% | 2.8% | US$70.00 | US$65.00 | n/a | 5 |
| May ’25 | US$53.21 | US$66.60 +25.2% | 2.8% | US$70.00 | US$65.00 | n/a | 5 |
| Apr ’25 | US$59.74 | US$71.20 +19.2% | 7.0% | US$80.00 | US$65.00 | n/a | 5 |
| Mar ’25 | US$58.59 | US$70.60 +20.5% | 7.6% | US$80.00 | US$65.00 | n/a | 5 |
| Feb ’25 | US$60.98 | US$71.60 +17.4% | 6.9% | US$80.00 | US$65.00 | n/a | 5 |
| Jan ’25 | US$64.44 | US$65.25 +1.3% | 10.9% | US$70.00 | US$53.00 | n/a | 4 |
| Dec ’24 | US$60.42 | US$63.25 +4.7% | 10.5% | US$70.00 | US$53.00 | n/a | 4 |
| Nov ’24 | US$52.06 | US$66.67 +28.1% | 5.1% | US$70.00 | US$62.00 | US$62.78 | 3 |
| Oct ’24 | US$56.49 | US$71.00 +25.7% | 7.5% | US$77.00 | US$64.00 | US$65.90 | 3 |
| Sep ’24 | US$63.24 | US$71.00 +12.3% | 7.5% | US$77.00 | US$64.00 | US$63.80 | 3 |
| Aug ’24 | US$62.83 | US$71.00 +13.0% | 7.5% | US$77.00 | US$64.00 | US$60.26 | 3 |
| Jul ’24 | US$57.02 | US$65.67 +15.2% | 7.6% | US$71.00 | US$59.00 | US$53.38 | 3 |
| Jun ’24 | US$55.76 | US$66.33 +19.0% | 6.2% | US$71.00 | US$61.00 | US$55.58 | 3 |
| May ’24 | US$57.57 | US$61.80 +7.3% | 13.2% | US$71.00 | US$47.00 | US$53.21 | 5 |
| Apr ’24 | US$55.66 | US$62.80 +12.8% | 13.7% | US$72.00 | US$47.00 | US$59.74 | 5 |
| Mar ’24 | US$55.91 | US$62.80 +12.3% | 13.7% | US$72.00 | US$47.00 | US$58.59 | 5 |
| Feb ’24 | US$62.88 | US$61.40 -2.4% | 12.3% | US$67.00 | US$47.00 | US$60.98 | 5 |
| Jan ’24 | US$52.34 | US$59.40 +13.5% | 11.6% | US$67.00 | US$47.00 | US$64.44 | 5 |
| Dec ’23 | US$54.08 | US$59.40 +9.8% | 11.6% | US$67.00 | US$47.00 | US$60.42 | 5 |
| Nov ’23 | US$50.44 | US$63.20 +25.3% | 18.7% | US$83.00 | US$47.00 | US$52.06 | 5 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Sompo Holdings
JP¥3.4t
Provides property and casualty (P&C) insurance services in Japan and internationally.
SMPN.Y
JP¥11.32
7D
-0.4%
1Y
55.5%
American Financial Group
US$11.6b
An insurance holding company, provides specialty property and casualty insurance products in the United States.
AFG
US$139.64
7D
-1.8%
1Y
28.1%
Markel Group
US$22.0b
A diverse holding company, engages in marketing and underwriting specialty insurance products in the United States, Bermuda, the United Kingdom, and Germany.
MKL
US$1,706.27
7D
3.3%
1Y
21.0%