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.

FAF Free Cash Flow Trend

Free Cash Flow trendline for FAF
Free Cash Flow trendline for First American Financial Corporation

Based on historical returns, we believe that First American Financial Corporation can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company has a high dividend yield.
  • This company is solid.
  • This company has fluctuating growth.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

Inside the FAF Numbers

FAF Price
(First American Financial Corporation stock price per share)
$58.05
[?] FAF Fair Price
(based on intrinsic value)
$53.29
[?] FAF Safety Price (based on a variable margin of safety) $34.64
[?] PE Ratio versus Sector 8% lower than other Financial stocks
[?] PE Ratio versus Industry 1% higher than other Unknown stocks
[?] Cash Yield 5.75%
[?] Free Cash Flow Jitter 28%
[?] Dividend Yield 3%

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 overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

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.