First American Financial Corporation Stock Price and Value Analysis

Should you buy First American Financial Corporation stock? (NYSE:FAF). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has stable growth.
  • This stock is on sale.
  • This company is solid.
  • This company has a large dividend yield!
  • This company is making money at a modest rate.

Inside the FAF Numbers

FAF Price
(First American Financial Corporation stock price per share)
$51.86
[?] FAF Fair Price
(based on intrinsic value)
$59.62
[?] FAF Safety Price (based on a variable margin of safety) $38.75
[?] PE Ratio versus Sector 49% lower than other Financial stocks
[?] PE Ratio versus Industry 1% higher than other Unknown stocks
[?] Cash Yield 6.55%
[?] Free Cash Flow Jitter 23%
[?] Dividend Yield 4%
Shares Shorted 3,707,852

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 3,707,852 shares shorted. With 89,548,885 shares available for purchase and an average trading volume over the past 10 trading days of 600,010, it would take at least 6.18 days for all of the short holders to cover their shorts.

Is First American Financial Corporation Stock on Sale?

We believe that First American Financial Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

First American Financial Corporation looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy FAF Stock?

Does First American Financial Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.