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

FAF Free Cash Flow Trend

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!

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

Inside the FAF Numbers

FAF Price
(First American Financial Corporation stock price per share)
$45.53
[?] FAF Fair Price
(based on intrinsic value)
$51.00
[?] FAF Safety Price (based on a variable margin of safety) $33.15
[?] PE Ratio versus Sector 66% higher than other Financial stocks
[?] PE Ratio versus Industry 1% higher than other Unknown stocks
[?] Cash Yield 6.03%
[?] Free Cash Flow Jitter 29%
[?] Dividend Yield 4%

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.