First American Financial Corp (FAF)

NYSE · Financial · Insurance - Specialty · USA

First American Financial Corp is a mid cap company (market value between $2 billion and $10 billion) in the Insurance - Specialty industry.

First American Financial Corporation offers title insurance and related services for real estate transactions in the United States and internationally, alongside banking, trust, lending and wealth management offerings. The company also operates a home warranty segment and generates revenue primarily from activity in real estate and mortgage markets through its network of direct operations and agents.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the First American Financial Corp stock.

Our verdict on FAF

Undervalued: intrinsic value $88.55 per share, market price $64.82, margin of safety 26.8% (as of 2026-10-19).

Book value at 1.38x, the multiple a 13.9% return on equity justifies, blended with earnings, values the shares at $88.55; the price of $64.82 is 27% below that value.

Leak Score: 78/100 on 11 of 12 signals (Clear Leak).

ETFs with the most weight in FAF

17 more funds hold it; the full list is part of the paid plan.

More on FAF

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Cheaper than FAF in Insurance - Specialty

1 more in this industry show a wider margin of safety.

Is FAF undervalued or overvalued?

FAF is undervalued (as of the 2026-10-19 close). Book value at 1.38x, the multiple a 13.9% return on equity justifies, blended with earnings, values the shares at $88.55; the price of $64.82 is 27% below that value.

What is the intrinsic value of FAF?

$88.55 per share (as of the 2026-10-19 close), against a market price of $64.82. That is a margin of safety of 26.8%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What is First American Financial Corp's Leak Score?

78 out of 100, which we rate "Clear Leak", on 11 of 12 value investing signals.