First American Valuation
| Y1F Stock | EUR 61.50 0.50 0.82% |
At this time, the firm appears to be fairly valued. First American Financial shows a prevailing Real Value of €61.12 per share. The current price of the firm is €61.5. Our model computes the value of First American Financial from reviewing the firm fundamentals such as Shares Outstanding of 103.13 M, current valuation of 5.15 B, and Profit Margin of 0.03 % as well as analyzing its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that First American's price fluctuation is very steady at this time. Calculation of the real value of First American Financial 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 Financial. 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 61.5 | Real 61.12 | Hype 61.5 | Naive 57.14 |
The real value of First Stock, also known as its intrinsic value, is the underlying worth of First American Financial 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 Financial 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 Total Value Analysis
First American Financial is at this time estimated to have takeover price of 5.15 B with market capitalization of 5.47 B, debt of 1.65 B, and cash on hands of 1.41 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the First American fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
5.15 B | 5.47 B | 1.65 B | 1.41 B |
First American Investor Information
About 88.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.25. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. First American Financial last dividend was issued on the 7th of March 2023. Based on the analysis of First American's profitability, liquidity, and operating efficiency, First American Financial is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.First American Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. First American has an asset utilization ratio of 50.78 percent. This implies that the Company is making €0.51 for each dollar of assets. An increasing asset utilization means that First American Financial is more efficient with each dollar of assets it utilizes for everyday operations.First American Ownership Allocation
First American holds a total of 103.13 Million outstanding shares. The majority of First American Financial outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in First American Financial to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in First American. Please pay attention to any change in the institutional holdings of First American Financial as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.First American Profitability Analysis
The company reported the revenue of 7.59 B. Net Income was 263 M with profit before overhead, payroll, taxes, and interest of 4.29 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates First American's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in First American and how it compares across the competition.
About First American Valuation
The stock valuation mechanism determines First American's current worth on a weekly basis. Our valuation model uses a comparative analysis of First American. We calculate exposure to First American's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of First American's related companies.First American Financial Corporation, through its subsidiaries, provides financial services. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California. FIRST AMERN operates under Insurance - Specialty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18251 people.
8 Steps to conduct First American's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates First American's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct First American's valuation analysis, follow these 8 steps:- Gather financial information: Obtain First American's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine First American's revenue streams: Identify First American's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research First American's industry and market trends, including the size of the market, growth rate, and competition.
- Establish First American's growth potential: Evaluate First American's management, business model, and growth potential.
- Determine First American's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate First American's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for First Stock analysis
When running First American's price analysis, check to measure First American's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First American is operating at the current time. Most of First American's value examination focuses on studying past and present price action to predict the probability of First American's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First American's price. Additionally, you may evaluate how the addition of First American to your portfolios can decrease your overall portfolio volatility.
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