First American Corporation (New) (FAF) Company Bio
First American Financial is a provider of title insurance, settlement services and risk solutions for real estate transactions. The company provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. The company was founded in 2008 and is based in Santa Ana, California.
FAF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for First American Financial Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that First American Financial Corp ranked in the 74th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 214.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for FAF, they are:
Interest coverage, a measure of earnings relative to interest payments, is 16.51 -- which is good for besting 77.37% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
First American Financial Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 11.88% of tickers in our DCF set.
FAF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 11.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FAF, try ATAX, ESNT, CACC, AMP, and MCY.
What are Value Stocks? A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching: 1. Virtu Financial (NASDAQ:VIRT) - P/E: 5.94 2. First American Financial (NYSE:FAF) - P/E: 9.69 3. Chemung Financial (NASDAQ:CHMG) - P/E: 9.32 4. Yiren Digital (NYSE:YRD) - P/E: 7.53 5. Customers Bancorp (NYSE:CUBI) - P/E: 7.78This quarter, Virtu Financial e...
First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, announced today that Fortune® and Great Place to Work® named First American as one of the 2021 Best Workplaces in the San Francisco Bay Area, marking the second consecutive year the company has been recognized as a premier Bay Area employer.
HOVER, the technology company that transforms smartphone photos of any property into a valuable data set for insurance professionals, today announced a strategic partnership with Amica Mutual Insurance, a leading national insurer recognized as a Best Homeowners Insurance Company of 2020 by U.S. News & World Report's 360 Reviews team. Providing a complete data package through HOVER's proprietary technology and integration through the CoreLogic Digital Hub Alliance™, Amica will transform the customer experience by dramatically lowering inspection costs and streamlining workflows.