First American Financial Corp (FAF) is undervalued and Radian Group Inc (RDN) is undervalued.
Against our estimates of intrinsic value, RDN trades at the wider discount: a margin of safety of +36%, against +22% for FAF.
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 1.52x, the multiple a 12.0% return on equity justifies, blended with earnings, values the shares at $54.57; the price of $34.69 is 36% below that value.
Leak Score 68/100 on 3 of 12 signals
| Metric | FAF | RDN |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $69.24 | $34.69 |
| Intrinsic value | $88.72 | $54.57 |
| Margin of safety | +22% | +36% |
| Leak Score | 84/100 (3/12) | 68/100 (3/12) |
| Market cap | $7.1B | $4.6B |
| Revenue growth, 5 years | 1.0% | -3.6% |
| Operating margin | 14.4% | 51.1% |
| Net margin | 9.3% | 32.6% |
| Return on equity | 13.9% | 12.0% |
| Debt to equity | 0.31 | 0.26 |
| P/E | 9.6x | 8.9x |
| Forward P/E | 9.6x | 6.7x |
| P/B | 1.3x | 1.0x |
| Dividend yield | 3.2% | 6.1% |