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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for First American Financial Corp. To summarize, we found that First American Financial Corp ranked in the 78th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 381.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for First American Financial Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 18.36; that's higher than 81.79% of US stocks in the Financial Services sector that have positive free cash flow.
First American Financial Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 18.84% of tickers in our DCF set.
FAF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 18.84% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ATAX, MMAC, OXSQ, CUII, and WRLD can be thought of as valuation peers to FAF, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Cannae Holdings, Inc. (NYSE: CNNE), ("Cannae") and Senator Investment Group, LP ("Senator"), which, directly or through affiliated entities, jointly own or have an economic interest equivalent to approximately 15% of the outstanding shares of CoreLogic, Inc. (NYSE: CLGX), (the "Company") today responded to CoreLogic’s rejection of the group’s proposal to acquire CoreLogic:
CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today announced increased financial guidance for the full year 2020 and provided 2021 and 2022 financial guidance, as summarized below.
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for May 2020. Nationally, home prices increased by 4.8%, compared with May 2019. Home prices increased 0.7% in May 2020 compared with April of this year.
CoreLogic Inc. (NYSE: CLGX) today announced that its Board of Directors has unanimously rejected the unsolicited proposal from Senator Investment Group LP and Cannae Holdings Inc., received on June 26, 2020, to acquire all outstanding common shares of CoreLogic for $65.00 per share in cash. After a careful and thorough review, conducted in consultation with its independent financial and legal advisors, CoreLogic’s Board of Directors unanimously concluded that the unsolicited proposal significantly undervalues the Company, raises serious regulatory concerns, and is not in the best interests of its shareholders.