First American Stock Current Valuation
| FAF Stock | USD 70.15 0.48 0.68% |
Valuation analysis of First American helps investors to measure First American's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current Enterprise Value Over EBITDA is estimated to decrease to 7.20. The current Enterprise Value Multiple is estimated to decrease to 7.20. Fundamental drivers impacting First American's valuation include:
Price Book 1.419 | Enterprise Value 7.2 B | Price Sales 1.2389 | Forward PE 9.3809 | Trailing PE 79.7159 |
Undervalued
Today
Please note that First American's price fluctuation is very steady at this time. Calculation of the real value of First American is based on 3 months time horizon. Increasing First American's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the First stock is determined by what a typical buyer is willing to pay for full or partial control of First American. Since First American is currently traded on the exchange, buyers and sellers on that exchange determine the market value of First Stock. However, First American's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 70.15 | Real 77.24 | Target 71.0 | Hype 70.29 | Naive 72.74 |
The real value of First Stock, also known as its intrinsic value, is the underlying worth of First American Company, which is reflected in its stock price. It is based on First American's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of First American's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of First American helps investors to forecast how First stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of First American more accurately as focusing exclusively on First American's fundamentals will not take into account other important factors: First American Company Current Valuation Analysis
First American's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current First American Current Valuation | 7.19 B |
Most of First American's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, First American is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for First American is extremely important. It helps to project a fair market value of First Stock properly, considering its historical fundamentals such as Current Valuation. Since First American's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of First American's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of First American's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, First American has a Current Valuation of 7.19 B. This is 78.11% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is 56.78% higher than that of the company.
First Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses First American's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of First American could also be used in its relative valuation, which is a method of valuing First American by comparing valuation metrics of similar companies.First American is currently under evaluation in current valuation category among its peers.
First American ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First American's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First American's managers, analysts, and investors.Environmental | Governance | Social |
First Fundamentals
| Return On Equity | 0.0195 | |||
| Return On Asset | 0.0097 | |||
| Profit Margin | 0.02 % | |||
| Operating Margin | (0.08) % | |||
| Current Valuation | 7.19 B | |||
| Shares Outstanding | 103 M | |||
| Shares Owned By Insiders | 3.73 % | |||
| Shares Owned By Institutions | 89.53 % | |||
| Number Of Shares Shorted | 1.3 M | |||
| Price To Earning | 12.81 X | |||
| Price To Book | 1.42 X | |||
| Price To Sales | 1.24 X | |||
| Revenue | 938.5 M | |||
| Gross Profit | 4.29 B | |||
| EBITDA | 595.4 M | |||
| Net Income | 216.8 M | |||
| Cash And Equivalents | 1.22 B | |||
| Cash Per Share | 23.39 X | |||
| Total Debt | 1.39 B | |||
| Debt To Equity | 0.50 % | |||
| Current Ratio | 0.39 X | |||
| Book Value Per Share | 49.44 X | |||
| Cash Flow From Operations | 354.3 M | |||
| Short Ratio | 1.91 X | |||
| Earnings Per Share | 0.88 X | |||
| Price To Earnings To Growth | 2.04 X | |||
| Target Price | 76.4 | |||
| Number Of Employees | 19.21 K | |||
| Beta | 1.31 | |||
| Market Capitalization | 7.28 B | |||
| Total Asset | 16.8 B | |||
| Retained Earnings | 3.71 B | |||
| Annual Yield | 0.03 % | |||
| Five Year Return | 3.10 % | |||
| Net Asset | 16.8 B | |||
| Last Dividend Paid | 2.13 |
About First American Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze First American's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First American using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First American based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When determining whether First American is a strong investment it is important to analyze First American's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First American's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:Check out First American Piotroski F Score and First American Altman Z Score analysis. For more detail on how to invest in First Stock please use our How to Invest in First American guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First American. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Dividend Share 2.13 | Earnings Share 0.88 | Revenue Per Share 56.505 | Quarterly Revenue Growth (0.05) |
The market value of First American is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First American's value that differs from its market value or its book value, called intrinsic value, which is First American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First American's market value can be influenced by many factors that don't directly affect First American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First American's value and its price as these two are different measures arrived at by different means. Investors typically determine if First American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.