SharesGrow 7-Criteria Score
All 7 criteria scored · valuation-related highlighted on this page
First American Financial Corporation (FAF) trades at a trailing P/E of 10.4, forward P/E of 10.0. Trailing earnings yield is 9.59%, forward earnings yield 9.99%. PEG 0.03 (Peter Lynch undervalued ≤1.0). Graham Number is $85.33.
Criteria proven by this page:
- VALUE (87/100, Pass) — P/E is below market average (10.4); PEG ≤ 1.0 — Peter Lynch undervalued (0.03); analyst target implies upside (+19.8%); earnings yield beats bond yields (9.59%).
- Forward P/E 10.0 (down from trailing 10.4) — analysts expect earnings to grow, which would improve the valuation.
- PEG Ratio 0.03 — below 1.0 suggests the stock is undervalued relative to its earnings growth rate (Peter Lynch criterion).
- Trailing Earnings Yield 9.59% — exceeds typical bond yields (~4.3%), making equity attractive vs fixed income. Forward yield improves to 9.99% as earnings recover.
- Analyst consensus target $76.00 (+19.8% upside) — significant upside potential according to Wall Street analysts.
Overall SharesGrow Score: 80/100 with 6/7 criteria passed.
SharesGrow 7-Criteria Score
✓
VALUE
87/100
Price-to-Earnings & upside
Proven by this page
✓
HEALTH
75/100
Debt-to-Equity & liquidity
→ Health
Valuation Snapshot — FAF
Valuation Multiples
P/E (TTM)10.4
Forward P/E10.0
PEG Ratio0.03
Forward PEG1.79
P/B Ratio1.18
P/S Ratio0.86
EV/EBITDA5.8
Per Share Data
EPS (TTM)$6.05
Forward EPS (Est.)$6.34
Book Value / Share$53.50
Revenue / Share$72.49
FCF / Share$7.42
Yields & Fair Value
Earnings Yield9.59%
Forward Earnings Yield9.99%
Dividend Yield3.47%
Graham Number$85.33
SharesGrow IV$75.70 (+19.4%)
Analyst Target$76.00 (+19.8%)
Historical Valuation
| Year |
P/E (TTM) |
PEG Ratio |
P/B Ratio |
P/S Ratio |
Dividend Yield |
| 2016 |
11.8 |
0.70 |
1.35 |
0.73 |
3.25% |
| 2017 |
14.8 |
0.66 |
1.80 |
1.08 |
2.55% |
| 2018 |
10.6 |
0.96 |
1.34 |
0.88 |
3.55% |
| 2019 |
9.3 |
0.19 |
1.49 |
1.06 |
2.86% |
| 2020 |
8.4 |
-6.54 |
1.19 |
0.82 |
3.41% |
| 2021 |
7.0 |
0.09 |
1.51 |
0.94 |
2.45% |
| 2022 |
21.3 |
-0.27 |
1.20 |
0.74 |
3.87% |
| 2023 |
31.0 |
-2.01 |
1.39 |
1.12 |
3.22% |
| 2024 |
49.5 |
-1.26 |
1.32 |
1.06 |
3.40% |
| 2025 |
10.2 |
0.03 |
1.15 |
0.85 |
3.51% |
P/E Ratio & Earnings Yield
Earnings Per Share (EPS) History
| Year |
EPS (Diluted) |
Revenue |
Net Income |
Net Margin |
| 2016 |
$3.09 |
$5.58B |
$342.99M |
6.2% |
| 2017 |
$3.76 |
$5.77B |
$423.05M |
7.3% |
| 2018 |
$4.19 |
$5.75B |
$474.5M |
8.3% |
| 2019 |
$6.22 |
$6.2B |
$707.41M |
11.4% |
| 2020 |
$6.16 |
$7.09B |
$696M |
9.8% |
| 2021 |
$11.14 |
$9.22B |
$1.24B |
13.5% |
| 2022 |
$2.45 |
$7.61B |
$263M |
3.5% |
| 2023 |
$2.07 |
$938.5M |
$216.8M |
23.1% |
| 2024 |
$1.26 |
$6.12B |
$131.1M |
2.1% |
| 2025 |
$6.00 |
$7.45B |
$621.8M |
8.4% |
Analyst Estimates
| Year |
EPS (Avg) |
EPS Range |
Revenue (Avg) |
Revenue Range |
Analysts |
| 2026 |
$6.34 |
$6.26 – $6.46 |
$7.99B |
$7.95B – $8.02B |
3 |
| 2027 |
$6.86 |
$6.73 – $6.98 |
$8.45B |
$8.42B – $8.48B |
3 |
| 2028 |
$7.49 |
$7.42 – $7.55 |
$8.72B |
$8.65B – $8.77B |
1 |
