AlphaStocks
6.7
Consider Buy

First American Financial Corp (FAF)

Financials / Property & Casualty Insurance

S&P MidCap 400

$59.28

Middle of the pack. No strong signal either way.

Consider Buy

Score based on 4 of 5 models — moderate confidence

#15out of 50 in Financials

Is First American Financial Corp a Good Investment in 2026?

First American Financial Corp (FAF) scores 6.7 out of 10 on AlphaStocks' composite model, earning a Consider Buy rating. The Piotroski model rates First American Financial Corp as Strong (8/9). The Graham model is the least favorable, rating it Strong. First American Financial Corp currently trades above its estimated fair value of $55, suggesting limited upside at current prices. First American Financial Corp ranks #15 out of 50 stocks in the Financials sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E9.9ROE11.5Market Cap6BDiv Yield3.6

Estimated Fair Value

$55.058% above

Trading near estimated fair value.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Strong

8/9

Buffett

Strong

Business quality & competitive moat

Graham

Strong

14% below fair value

Lynch

Limited Data

High PEG — growth premium

Greenblatt

Limited Data

Earnings yield + return on capital

Frequently Asked Questions

Is First American Financial Corp (FAF) a good investment?
Based on AlphaStocks' composite analysis, First American Financial Corp (FAF) scores 6.7 out of 10, earning a Consider Buy rating. This is a middle-of-the-pack score with no strong signal either way. Trading near estimated fair value.
What is First American Financial Corp's Piotroski F-Score?
First American Financial Corp's Piotroski F-Score status is Strong. The raw score is 8/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is FAF overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $55, FAF appears overvalued. The stock currently trades 8% above its estimated fair value. Trading near estimated fair value.
How does FAF compare to other Financials stocks?
First American Financial Corp ranks #15 out of 50 stocks in the Financials sector, placing it in the top 30% of its sector by composite score. This is an above-average position relative to sector peers.
What do investment models say about FAF?
AlphaStocks evaluates FAF using five proven investment models. Piotroski: Strong; Buffett: Strong; Graham: Strong. These models are combined into a single composite score of 6.7/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer