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 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 336.33%. As for the metrics that stood out in our discounted cash flow analysis of First American Financial Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 17.73 -- which is good for besting 79.64% 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 7%; for context, that number is higher than only 15.08% 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 15.08% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FCRD, FNF, HCI, CACC, and CPTA 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.
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First American Mortgage Solutions, LLC, a part of the First American family of companies and leading provider of lender and servicer solutions that cover the entire loan spectrum, today announced the launch of a new monitoring solution, Mortgage Forbearance Indicator (MFI). The MFI is a module available through FraudGuard®, First American Mortgage Solutions’ data-driven decision-support tool with over 20 unique modules and integrated solutions that helps lenders comply with regulations, improve the speed and efficiency of underwriting reviews, and increase loan quality while mitigating against potential risk.
CoreLogic (NYSE: CLGX), a leading global provider of property information, insight, analytics and data-enabled solutions, today filed its definitive proxy statement with the U.S. Securities and Exchange Commission ("SEC") in connection with its upcoming Special Meeting of Shareholders on November 17, 2020. The proxy statement and other important information related to the Special Meeting can be found at CoreLogicValue.com.