First American Financial Corporation (FAF) Financial Ratios
19 years of historical data (2007–2025) · Financial Services · Insurance - Specialty
EV/EBITDA
↑
7.23
↓-35% vs avg
5yr avg: 11.09
30Y Low3.9·High19.1
P/FCF
↑
9.21
↓-59% vs avg
5yr avg: 22.22
30Y Low6.0·High74.2
P/B Ratio
↓
1.29
-2% vs avg
5yr avg: 1.31
30Y Low0.7·High1.8
ROE
↓
11.9%
↓+26% vs avg
5yr avg: 9.5%
30Y Low-7%·High23%
Debt/EBITDA
↑
1.83
↓-50% vs avg
5yr avg: 3.66
30Y Low0.4·High6.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
FAF Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
First American Financial Corporation trades at 11.4x earnings, 52% below its 5-year average of 23.9x, sitting at the 38th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 16%. On a free-cash-flow basis, the stock trades at 9.2x P/FCF, 59% below the 5-year average of 22.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.0B | $6.4B | $6.5B | $6.7B | $5.6B | $8.7B | $5.8B | $6.6B | $5.1B | $6.3B | $4.1B |
| Enterprise Value | $7.5B | $6.9B | $7.1B | $5.3B | $6.3B | $9.9B | $6.3B | $6.4B | $4.4B | $5.6B | $3.8B |
| P/E Ratio → | 11.44 | 10.24 | 49.56 | 31.13 | 21.36 | 7.02 | 8.38 | 9.38 | 10.65 | 14.90 | 11.85 |
| P/S Ratio | 0.94 | 0.86 | 1.06 | 1.12 | 0.74 | 0.95 | 0.82 | 1.07 | 0.88 | 1.09 | 0.73 |
| P/B Ratio | 1.29 | 1.16 | 1.32 | 1.39 | 1.20 | 1.51 | 1.19 | 1.50 | 1.35 | 1.81 | 1.35 |
| P/FCF | 9.21 | 8.36 | 9.59 | 74.15 | 10.80 | 8.23 | 6.01 | 8.22 | 7.49 | 12.65 | 11.40 |
| P/OCF | 7.38 | 6.70 | 7.26 | 19.02 | 7.20 | 7.14 | 5.38 | 7.26 | 6.38 | 9.97 | 8.32 |
P/E links to full P/E history page with 30-year chart
FAF EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
First American Financial Corporation's enterprise value stands at 7.2x EBITDA, 35% below its 5-year average of 11.1x. The Financial Services sector median is 11.4x, placing the stock at a 37% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.93 | 1.16 | 0.88 | 0.83 | 1.08 | 0.90 | 1.04 | 0.76 | 0.97 | 0.68 |
| EV / EBITDA | 7.23 | 6.61 | 19.12 | 11.39 | 12.79 | 5.53 | 5.91 | 6.22 | 5.93 | 9.78 | 6.56 |
| EV / EBIT | 9.13 | 7.01 | 22.63 | 12.96 | 15.06 | 5.80 | 6.47 | 6.74 | 6.71 | 11.65 | 7.42 |
| EV / FCF | — | 9.04 | 10.50 | 58.01 | 12.13 | 9.39 | 6.53 | 7.97 | 6.46 | 11.26 | 10.59 |
FAF Profitability
Margins and return-on-capital ratios measuring operating efficiency
First American Financial Corporation earns an operating margin of 11.1%, below the Financial Services sector average of 20.3%. Operating margins have expanded from 4.6% to 11.1% over the past 3 years, signaling improving operational efficiency. ROE of 11.9% is modest. ROIC of 10.7% represents solid returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 95.6% | 95.6% | 61.4% | 61.8% | 56.3% | 61.2% | 61.0% | 62.6% | 60.8% | 59.9% | 58.9% |
| Operating Margin | 11.1% | 11.1% | 2.7% | 4.6% | 4.3% | 17.8% | 13.0% | 14.6% | 10.6% | 7.7% | 8.6% |
| Net Profit Margin | 8.4% | 8.4% | 2.1% | 3.6% | 3.5% | 13.5% | 9.8% | 11.4% | 8.3% | 7.3% | 6.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.9% | 11.9% | 2.7% | 4.5% | 5.0% | 23.2% | 14.9% | 17.3% | 13.1% | 13.0% | 11.9% |
| ROA | 4.0% | 4.0% | 0.8% | 1.2% | 1.5% | 8.5% | 5.7% | 5.5% | 3.5% | 3.4% | 3.0% |
| ROIC | 10.7% | 10.7% | 2.8% | 4.7% | 3.9% | 19.8% | 14.4% | 18.7% | 15.7% | 12.1% | 14.3% |
| ROCE | 5.3% | 5.3% | 1.0% | 1.5% | 1.8% | 11.2% | 7.6% | 7.0% | 4.5% | 3.7% | 4.3% |
FAF Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
First American Financial Corporation carries a Debt/EBITDA ratio of 1.8x, which is manageable (57% below the sector average of 4.3x). Net debt stands at $519M ($1.9B total debt minus $1.4B cash). Interest coverage of 6.3x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.35 | 0.35 | 0.49 | 0.45 | 0.41 | 0.43 | 0.37 | 0.30 | 0.22 | 0.21 | 0.24 |
| Debt / EBITDA | 1.83 | 1.83 | 6.49 | 4.74 | 3.88 | 1.37 | 1.70 | 1.29 | 1.10 | 1.28 | 1.28 |
| Net Debt / Equity | — | 0.09 | 0.13 | -0.30 | 0.15 | 0.21 | 0.10 | -0.05 | -0.19 | -0.20 | -0.10 |
| Net Debt / EBITDA | 0.50 | 0.50 | 1.65 | -3.17 | 1.40 | 0.68 | 0.47 | -0.19 | -0.94 | -1.21 | -0.50 |
| Debt / FCF | — | 0.68 | 0.91 | -16.14 | 1.33 | 1.16 | 0.52 | -0.25 | -1.03 | -1.40 | -0.81 |
| Interest Coverage | 6.26 | 6.26 | 2.11 | 3.07 | 4.50 | 23.67 | 17.19 | 19.85 | 15.87 | 13.37 | 15.83 |
FAF Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | — | — | 39.58 | — | — | — | 6.76 | 5.41 | 4.37 |
| Quick Ratio | — | — | — | — | 6.38 | — | — | — | 14.19 | 11.72 | 9.82 |
| Cash Ratio | — | — | — | — | 4.74 | — | — | — | 5.30 | 4.55 | 3.44 |
| Asset Turnover | — | 0.46 | 0.41 | 0.36 | 0.39 | 0.56 | 0.55 | 0.54 | 0.40 | 0.44 | 0.47 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
FAF Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
First American Financial Corporation returns 4.9% to shareholders annually — split between a 3.1% dividend yield and 1.7% buyback yield. The payout ratio of 35.9% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 8.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 3.5% | 3.4% | 3.2% | 3.9% | 2.4% | 3.4% | 2.8% | 3.5% | 2.5% | 3.2% |
| Payout Ratio | 35.9% | 35.9% | 168.3% | 99.9% | 82.5% | 17.2% | 28.5% | 26.7% | 37.6% | 37.7% | 38.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.7% | 9.8% | 2.0% | 3.2% | 4.7% | 14.2% | 11.9% | 10.7% | 9.4% | 6.7% | 8.4% |
| FCF Yield | 10.9% | 12.0% | 10.4% | 1.3% | 9.3% | 12.2% | 16.6% | 12.2% | 13.3% | 7.9% | 8.8% |
| Buyback Yield | 1.7% | 1.9% | 1.1% | 1.1% | 7.8% | 1.1% | 2.4% | 0.0% | 0.4% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.9% | 5.4% | 4.4% | 4.3% | 11.7% | 3.6% | 5.8% | 2.9% | 3.9% | 2.5% | 3.2% |
| Shares Outstanding | — | $104M | $104M | $105M | $107M | $111M | $113M | $114M | $113M | $112M | $111M |
Peer Comparison
Compare FAF with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 FAFYou | $7B | 11.4 | 7.2 | 9.2 | 95.6% | 11.1% | 11.9% | 10.7% | 1.8 |
 FNF | $13B | 21.2 | 6.6 | 2.0 | 98.2% | 9.9% | 6.9% | 10.1% | 2.1 |
 STC | $2B | 16.5 | 11.5 | 15.3 | 87.7% | 5.7% | 7.5% | 6.2% | 3.9 |
 ITIC | $488M | 13.9 | 9.7 | 19.2 | 98.3% | 16.3% | 13.5% | 13.7% | 0.2 |
 MTG | $6B | 8.3 | 6.2 | 6.5 | 94.9% | 76.5% | 14.3% | 12.7% | 0.7 |
 RDN | $5B | 8.4 | 7.2 | 14.0 | 92.3% | 61.2% | 12.4% | 8.9% | 1.4 |
 ESNT | $5B | 8.5 | 7.0 | 6.3 | 88.2% | 65.2% | 12.1% | 10.2% | 0.6 |
 NMIH | $3B | 7.6 | 6.1 | 6.9 | 91.8% | 70.8% | 16.2% | 13.5% | 0.8 |
 ACT | $6B | 9.4 | 6.8 | 8.3 | 91.1% | 69.8% | 13.0% | 12.1% | 0.8 |
 CSGP | $13B | 1814.5 | 71.6 | 311.4 | 75.2% | -2.2% | 0.1% | -0.9% | 6.7 |
 OPEN | $3B | -2.6 | — | 3.3 | 7.0% | -6.2% | -151.3% | -15.8% | — |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 19 years · Updated daily
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FAF — Frequently Asked Questions
Quick answers to the most common questions about buying FAF stock.
What is First American Financial Corporation's P/E ratio?
First American Financial Corporation's current P/E ratio is 11.4x. The historical average is 16.2x. This places it at the 38th percentile of its historical range.
What is First American Financial Corporation's EV/EBITDA?
First American Financial Corporation's current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.7x.
What is First American Financial Corporation's ROE?
First American Financial Corporation's return on equity (ROE) is 11.9%. The historical average is 8.6%.
Is FAF stock overvalued?
Based on historical data, First American Financial Corporation is trading at a P/E of 11.4x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is First American Financial Corporation's dividend yield?
First American Financial Corporation's current dividend yield is 3.13% with a payout ratio of 35.9%.
What are First American Financial Corporation's profit margins?
First American Financial Corporation has 95.6% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does First American Financial Corporation have?
First American Financial Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.