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First American Financial Corp (FAF)

Title Insurance ยท Financial Services ยท $6.9B

undervalued
Intrinsic Value (Consensus)
$111.71
Current Price
$67.82
Margin of Safety
+64.7%
64.7% Below Intrinsic Value
Value: $112
Price: $68

Valuation Model Estimates

Current Price: $67.82
DCF (Discounted Cash Flow)
$371.20
Graham Number
$85.27
Earnings Power Value
$58.25
Relative Value (P/E)
$120.00
Dividend Discount Model
$183.33
Consensus Value
$111.71

Model Assumptions

Discount Rate
10.3%
Growth Rate
20.0%
Terminal Growth
2.5%
Risk-Free Rate
4.3%

Discount rate derived from CAPM (risk-free rate + beta ร— market risk premium). Growth rate based on trailing earnings growth, capped at 20%.

Health Score

B
79
Profitability
18/25
Strength
17/25
Valuation
22/25
Growth
22/25

Financial Health Signals

Strong earnings growth (20% YoY)
High free cash flow yield (11.7%) โ€” generating lots of cash relative to price

Key Financials

EPS (TTM)
$6.00
EPS (Forward)
$7.20
Book Value
$53.86
P/E Ratio
20.0
Forward P/E
16.7
PEG Ratio
โ€”
ROE
11.3%
Debt/Equity
โ€”
Revenue Growth
21.6%
Earnings Growth
20.0%
Dividend Yield
0.5%
Beta
1.00

Data last updated: 2026-06-16

Source: Yahoo Finance