16.8% Below Target

First American Financial Corporation (FAF) has a consensus 12-month price target of $83, implying 16.8% upside from $71.05. The 15 analysts covering FAF see moderate appreciation potential.

FAF has a consensus rating of "Buy" based on 15 Wall Street analysts. The rating breakdown is predominantly bullish, with 11 Buy/Strong Buy ratings. The consensus 12-month price target of $83 implies 16.8% upside from current levels.

With a forward P/E of 10.5533x, FAF trades at a relatively low valuation. The consensus target of $83 implies 16.8% appreciation, suggesting meaningful undervaluation.

The most bullish Wall Street analyst has a price target of $85 for FAF, while the most conservative target is $80. The consensus of $83 represents the median expectation. Our quantitative valuation model projects a bull case target of $111 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

FAF is well covered by analysts, with 15 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 11 have Buy ratings, 3 recommend Hold, and 1 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month FAF stock forecast based on 15 Wall Street analysts shows a consensus price target of $83, with estimates ranging from $80 (bear case) to $85 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $84, with bear/bull scenarios of $53/$111.

Our quantitative valuation model calculates FAF's fair value at $84 (base case), with a bear case of $53 and bull case of $111. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 48/100.

FAF trades at a forward P/E ratio of 10.6x based on next-twelve-months earnings estimates compared to a trailing P/E of 11.8x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are optimistic on FAF, with a "Buy" consensus rating and $83 price target (16.8% upside). 11 of 15 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

FAF analyst price targets range from $80 to $85, a 6% tight range reflecting strong analyst consensus. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $83 consensus represents the middle ground. Our model's $53-$111 range provides an independent fundamental perspective.