Revisiting Fidelity National Financial’s Valuation After Its Recent One-Month Share Price Gain

Fidelity National Financial (FNF) has quietly outperformed over the past month, even as the stock remains down over the past year, making its recent move a fresh entry point to revisit the story.

See our latest analysis for Fidelity National Financial.

Despite a softer 1-day and 7-day share price return, the roughly 6 percent 1-month share price gain suggests momentum is stabilising. This comes alongside a modestly negative 1-year total shareholder return, which contrasts with the strong three and five year rebounds.

If FNF’s recent move has you rethinking your exposure to financials, this could also be a good moment to explore fast growing stocks with high insider ownership for other compelling ideas.

With earnings still growing, a sizeable discount to analyst targets and intrinsic value estimates, and a mixed recent share price, the key question is clear: is Fidelity National Financial a buying opportunity or is the market already pricing in future growth?

Most Popular Narrative: 16.7% Undervalued

With Fidelity National Financial last closing at $58.52, the most followed narrative points to a higher fair value, hinging on stronger earnings and margin expansion.

Analysts expect earnings to reach $2.1 billion (and earnings per share of $6.89) by about September 2028, up from $1.1 billion today. In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 10.7x on those 2028 earnings, down from 15.1x today.

Read the complete narrative.

Want to see what powers that leap in profits and margins? One subtle shift in the business mix underpins this entire valuation. Curious which one?

Result: Fair Value of $70.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated operating costs and a prolonged real estate slowdown could keep margins under pressure and challenge the optimistic earnings and valuation assumptions.

Find out about the key risks to this Fidelity National Financial narrative.

Build Your Own Fidelity National Financial Narrative

If this view does not quite fit your own thinking, or you prefer hands on analysis, you can build a personalised narrative in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Fidelity National Financial.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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