First American Financial Corporation

First American Financial Corporation

FAFยทNYSE

$64.58

+0.26%
Financial ServicesInsurance - Specialty

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, mortgage subservicing, and related products and services, 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 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The Specialty Insurance segment provides property and casualty insurance comprising coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage. It also offers residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California.

At a Glance

Live Snapshot
Market Cap$6.58B
EPS6.0200
P/E Ratio10.73
Earnings Date07/22/2026
First American Financial Corporation

First American Financial Corporation Fair Value Envelope

FAF ยท NYSE

Our analysis suggests that FAF has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $64.58, this represents a potential HIDDEN relative to our calculated worth for First American Financial Corporation.

Intrinsic Value
Current Price: $64.58

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

$
%
$
%
$
$

Projection Settings

Forecast period and terminal assumptions

%
%

DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$34.2B
+ Cash & Equivalents$1.4B
Firm Value$35.6B
- Debt$1.9B
Equity Value$33.7B
/ Shares Outstanding101,900,000B
DCF Value$331
UNDERVALUED BY 412%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$1.1B
$1.2B
$1.3B
$1.5B
$1.7B
$1.9B
$2.1B
$2.4B
$2.7B
$3.0B
Maintenance CapEx
-$42.3M
-$47.5M
-$53.3M
-$59.8M
-$67.2M
-$75.4M
-$84.6M
-$95.0M
-$106.7M
-$119.8M
Owner Earnings
$1.0B
$1.2B
$1.3B
$1.5B
$1.6B
$1.8B
$2.1B
$2.3B
$2.6B
$2.9B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$949.2M
$986.7M
$1.0B
$1.1B
$1.1B
$1.2B
$1.2B
$1.2B
$1.3B
$1.3B
Terminal Value represents 66.8% of Enterprise Value