Latest Ratios: P/E Ratio 11.8x · EV/EBITDA 7.4x · ROE 11.9%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.2B | $6.4B | $6.5B | $6.7B | $5.6B | $8.7B | $5.8B | $6.6B | $5.1B | $6.3B | $4.1B |
| Enterprise Value | $7.8B | $6.9B | $7.1B | $5.3B | $6.6B | $9.9B | $6.3B | $6.4B | $4.4B | $5.6B | $3.8B |
| P/E Ratio → | 11.84 | 10.24 | 49.56 | 31.13 | 21.36 | 7.02 | 8.38 | 9.38 | 10.65 | 14.90 | 11.85 |
| P/S Ratio | 0.97 | 0.86 | 1.06 | 1.12 | 0.74 | 0.95 | 0.82 | 1.07 | 0.88 | 1.09 | 0.73 |
| P/B Ratio | 1.34 | 1.16 | 1.32 | 1.39 | 1.20 | 1.51 | 1.19 | 1.50 | 1.35 | 1.81 | 1.35 |
| P/FCF | 9.50 | 8.36 | 9.59 | 74.15 | 10.80 | 8.23 | 6.01 | 8.22 | 7.49 | 12.65 | 11.40 |
| P/OCF | 7.61 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 0.87 | 1.07 | 0.90 | 1.04 | 0.76 | 0.97 | 0.68 |
| EV / EBITDA | 7.44 | 6.61 | 19.12 | 11.39 | 13.40 | 5.49 | 5.91 | 6.22 | 5.93 | 9.78 | 6.56 |
| EV / EBIT | 9.39 | 7.01 | 22.63 | 12.96 | 15.79 | 5.77 | 6.47 | 6.74 | 6.71 | 11.65 | 7.42 |
| EV / FCF | — | 9.04 | 10.50 | 58.01 | 12.71 | 9.33 | 6.53 | 7.97 | 6.46 | 11.26 | 10.59 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% | 1.4% | 1.7% | 8.5% | 5.7% | 5.5% | 3.5% | 3.4% | 3.0% |
| ROIC | 10.7% | 10.7% | 2.8% | 4.5% | 3.9% | 19.9% | 14.4% | 18.7% | 15.7% | 12.1% | 14.3% |
| ROCE | 5.3% | 5.3% | 2.2% | 3.7% | 4.0% | 22.9% | 7.6% | 7.0% | 4.5% | 3.7% | 4.3% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 0.49 | 0.43 | 0.37 | 0.30 | 0.22 | 0.21 | 0.24 |
| Debt / EBITDA | 1.83 | 1.83 | 6.49 | 4.74 | 4.63 | 1.37 | 1.70 | 1.29 | 1.10 | 1.28 | 1.28 |
| Net Debt / Equity | — | 0.09 | 0.13 | -0.30 | 0.21 | 0.20 | 0.10 | -0.05 | -0.19 | -0.20 | -0.10 |
| Net Debt / EBITDA | 0.50 | 0.50 | 1.65 | -3.17 | 2.02 | 0.65 | 0.47 | -0.19 | -0.94 | -1.21 | -0.50 |
| Debt / FCF | — | 0.68 | 0.91 | -16.14 | 1.91 | 1.11 | 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 |
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 | — | — | 0.32 | 0.46 | 0.22 | 0.23 | — | — | 6.76 | 5.41 | 4.37 |
| Quick Ratio | — | — | 0.32 | 0.46 | 0.22 | 0.23 | — | — | 14.19 | 11.72 | 9.82 |
| Cash Ratio | — | — | 0.26 | 0.39 | 0.17 | 0.17 | — | — | 5.30 | 4.55 | 3.44 |
| Asset Turnover | — | 0.46 | 0.41 | 0.36 | 0.51 | 0.56 | 0.55 | 0.54 | 0.40 | 0.44 | 0.47 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 3.0% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.4% | 9.8% | 2.0% | 3.2% | 4.7% | 14.2% | 11.9% | 10.7% | 9.4% | 6.7% | 8.4% |
| FCF Yield | 10.5% | 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 | 4.7% | 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 |
Mortgage origination volume volatility
Based on current market data, First American Financial trades at a P/B ratio of 1.26, which appears to discount the firm relative to peers like FNF, likely reflecting investor caution regarding the company's high sensitivity to the volatile residential mortgage origination cycle and long-term interest rate trends.
The current valuation multiple suggests that the market is pricing in a significant risk premium due to the cyclical nature of title insurance revenue. Investors should monitor whether this discount persists as the company continues its digital transformation, which may eventually justify a higher multiple if it successfully lowers the long-term cost per file.
As reported in quarterly financial disclosures, the combined ratio has exhibited extreme variance, ranging from a low of 86.0% in 2025Q4 to a high of 110.3% in 2024Q3, indicating that underwriting profitability remains highly susceptible to episodic loss events and broader housing market transaction volume fluctuations.
The wide swings in the combined ratio suggest that the company's underwriting results are not yet stabilized, potentially due to the long-tail nature of title insurance claims. Analysts should investigate whether the recent improvement in the combined ratio is a result of sustainable operational efficiency or merely favorable reserve development.
According to historical balance sheet figures, First American Financial maintains a disciplined approach to capital, with a debt-to-equity ratio that has remained consistently low, providing the firm with a robust buffer to navigate periods of reduced transaction activity and potential regulatory shifts in the title industry.
This conservative leverage profile appears to be a strategic choice to maintain financial flexibility during cyclical downturns. Investors should note that while this low leverage supports stability, it may also limit the company's ability to aggressively pursue inorganic growth opportunities without impacting its strong balance sheet position.
As indicated by the company's financial history, the P/E ratio is frequently misapplied to First American Financial, as it fails to account for the significant volatility introduced by actuarial reserve adjustments and the interest income generated from escrow deposits, which often distort core operational earnings performance.
Relying on P/E ratios for an insurer with such significant long-tail liabilities may lead to flawed conclusions about earnings quality. A more appropriate analytical framework would involve adjusting for reserve development and focusing on the combined ratio to better understand the underlying profitability of the underwriting business.
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying FAF stock.
First American Financial Corporation's current P/E ratio is 11.8x. The historical average is 16.2x. This places it at the 38th percentile of its historical range.
First American Financial Corporation's current EV/EBITDA is 7.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.8x.
First American Financial Corporation's return on equity (ROE) is 11.9%. The historical average is 8.6%.
Based on historical data, First American Financial Corporation is trading at a P/E of 11.8x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
First American Financial Corporation's current dividend yield is 3.03% with a payout ratio of 35.9%.
First American Financial Corporation has 95.6% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
First American Financial Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.