First American Financial Corp (FAF) is undervalued and Fidelity National Financial Inc (FNF) is overvalued.
Against our estimates of intrinsic value, FAF trades at the wider discount: a margin of safety of +22%, against -23% for FNF.
Values as of the 22 Sept 2026 close.
Book value at 1.39x, the multiple a 13.9% return on equity justifies, blended with earnings, values the shares at $88.72; the price of $69.24 is 22% below that value.
Leak Score 84/100 on 3 of 12 signals
Book value at 1.04x, the multiple a 10.1% return on equity justifies, blended with earnings, values the shares at $34.53; the price of $42.55 is 23% above that value.
Leak Score 27/100 on 3 of 12 signals
| Metric | FAF | FNF |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $69.24 | $42.55 |
| Intrinsic value | $88.72 | $34.53 |
| Margin of safety | +22% | -23% |
| Leak Score | 84/100 (3/12) | 27/100 (3/12) |
| Market cap | $7.1B | $11.4B |
| Revenue growth, 5 years | 1.0% | 6.0% |
| Operating margin | 14.4% | 12.9% |
| Net margin | 9.3% | 5.0% |
| Return on equity | 13.9% | 10.1% |
| Debt to equity | 0.31 | 0.64 |
| P/E | 9.6x | 14.8x |
| Forward P/E | 9.6x | 7.4x |
| P/B | 1.3x | 1.5x |
| Dividend yield | 3.2% | 4.8% |