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Definitive Analysis

Financial Statements

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Ticker

Industry

Sector

Page: Earnings Power Value

First American Financial Corporation

Ticker: FAF | Industry: Insurance - Specialty | Sector: Financial Services
$60.57 +1.54 (2.61%)
As of: 2026-01-15

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Valuation Snapshot

Intrinsic Range$74.34 — $90.66
Selected Value (Mid)$82.50
Live Price$63.90
Upside / Downside29.11%

EPV Per Share Breakdown

MetricLowMidHigh
EPV Per Share$74.34$82.50$90.66

Normalized EBIT Margin

ScenarioMargin
Low7.67%
Mid9.02%
High10.37%

Normalized Tax Rate

MetricValue
Tax Rate24.11%

Adjusted Earnings (NOPAT)

ScenarioValue
Low411,995,000
Mid484,700,000
High557,405,000

Capital Structure

ComponentValue
Net Debt-2,911,500,000
Shares Outstanding103,500,000
WACC8.61%

Reverse EPV (Market Implied)

If "Implied" > "Actual", market expects profitability to improve.

MetricActual (LTM)Market Implied
EBIT Margin9.02%6.10%
NOPAT (Earnings)484,700,000327,885,471
Enterprise Value5,627,270,4473,806,685,000

Valuation Details

MetricLowMidHigh
Enterprise Value4,783,179,8805,627,270,4476,471,361,015
(-) Net Debt-2,911,500,000-2,911,500,000-2,911,500,000
(=) Equity Value7,694,679,8808,538,770,4479,382,861,015
(/) Shares Outstanding103,500,000103,500,000103,500,000
(=) Fair Value$74.34$82.50$90.66
Live Price$63.90$63.90$63.90
Upside %16.35%29.11%41.87%

High-Upside EPV Screener

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