First American Financial Corporation (FAF) Fair Value 2026

FAF · Insurance - Specialty ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

7.9 /10

32 fundamental signals · 6 models active

Value Trap Risk

SAFE (12/100)

Quick Summary — As of 2026-08-28, First American Financial Corporation (FAF) trades at $74.47, versus a $51.72 median fair value across its 6 active models — 30.5% below the current price. QOC: 7.9/10. Value Trap Risk: 12/100 (SAFE). 6/13 models active.

Key Facts

Ticker
FAF
Price
$74.47
Quality Score
7.9/10
Value Trap Risk
12/100
Models Active
6/13
Last Updated
Strength: 6 independent models provide multi-angle coverage
Risk: Majority of models suggest overvaluation

Is First American Financial Corporation (FAF) Undervalued or Overvalued in 2026?

According to CirclFi’s 6-model valuation engine, First American Financial Corporation (FAF) appears overvalued as of : the median of 6 independent fair value estimates is $51.72, 30.5% below the current price of $74.47. Estimates range from $31.65 to $77.60. FAF scores 7.9/10 on fundamental quality and 12/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -23.4% versus its own 13-model consensus, across 3,809 rated companies as of 2026-08-28. FAF’s -30.5% gap is wider than that market norm, and the Insurance - Specialty sector median is +10.3%. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy First American Financial Corporation Stock in 2026? →

What Fair Value Does Each Model Give FAF?

6 Intrinsic Value Models vs. Current Price ($74.47)

Core Models (Unlocked)
Model Fair Value Upside
Intrinsic · High Conviction
 $41.75 -43.9%
Ensemble · Medium Conviction
 $51.24 -31.2%
Intrinsic · High Conviction
 $52.20 -29.9%
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What Is FAF's Fair Value Range?

Spread across 6 independent models · $31.65 to $77.60

CirclFi's 6 active models place First American Financial Corporation (FAF) between $31.65 and $77.60 per share, a spread of 89% of the median. The median of that range — $51.72 — is the fair value CirclFi publishes for FAF, against a current price of $74.47.

Low · Markov DDMHigh · Regime Cross
$31.65median $51.72$77.60
Where the range comes from
Most bearish modelMarkov DDM$31.65
Most bullish modelRegime Cross-Sectional$77.60
Model agreement0 bullish · 4 bearishmoderate

A band of this width is typical. The methods agree on direction but weight growth, reinvestment and risk differently, so treat the median as a centre of gravity rather than a precise target.

Every figure above is one model's standalone output on FAF, not a CirclFi price target. How each model works →

What Is First American Financial Corporation (FAF) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, the balance of valuation evidence tilts cautious on First American Financial Corporation at its current price of $74.47. The median intrinsic value is estimated at $51.72 (-30.5% vs price), with 4 models flagging overvaluation risk. Notably, Regime Cross sees the most upside at +4.2% (fair value: $77.60), while Markov DDM is the most conservative at -57.5% ($31.65). The spread between these extremes — +61.7% — reveals how different analytical frameworks can reach starkly different conclusions.

What Do the Models Say About FAF?

6 of 13 models are currently active for FAF. Of these, 1 model suggests upside while 5 models suggest overvaluation. Taken together, their median fair value for FAF is $51.72 — the figure CirclFi publishes as this stock's fair value. See which stocks rank higher →

How Does FAF Rank in Insurance - Specialty?

Among 17 Insurance - Specialty stocks, FAF ranks #7 by Quality of Company score. CirclFi's QOC score of 7.9/10 evaluates 32 fundamental signals. A score of 7.9 indicates above-average quality.

Within the Insurance - Specialty space, First American Financial Corporation competes in an environment where premium growth rate often separates market leaders from laggards. Understanding these industry-specific dynamics is essential context for interpreting our model outputs.

Is FAF a Value Trap?

CirclFi's Value Trap algorithm assigns FAF a score of 12/100 (SAFE). This indicates minimal risk. Fundamentals are healthy. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

6 of 13 models are active for First American Financial Corporation. Moderate coverage provides meaningful perspective. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi 32-factor quality framework, First American Financial Corporation's fundamental quality profile registers 7.9/10. This robust score captures the company's profitability depth, growth consistency, balance sheet resilience, and shareholder return track record.

The gap between the most bullish and bearish model spans +61.7% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every FAF valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across FAF's 6 active models, average confidence is 45%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy First American Financial Corporation Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Insurance - Specialty Stocks Should You Also Analyze?

10 related Insurance - Specialty stocks with 13-model coverage

ITICInvestors Title CompanyQOC 8.0FNFFidelity National Financial, Inc.QOC 7.9AXSAXIS Capital Holdings LimitedQOC 8.1AMSFAMERISAFE, Inc.QOC 7.8MTGMGIC Investment CorporationQOC 8.5RYANRyan Specialty Holdings, Inc.QOC 7.8AGOAssured Guaranty Ltd.QOC 7.8JRVRJames River Group Holdings, Inc.QOC 6.9ESNTEssent Group Ltd.QOC 9.1NMIHNMI Holdings, Inc.QOC 9.3

Read investment analysis: ITIC · FNF · AXS · AMSF · MTG · RYAN · AGO · JRVR · ESNT · NMIH

Which Other Stocks Have a Similar Quality Score to FAF?

7 companies across all industries closest to FAF’s Quality of Company score of 7.9/10.

AWRAmerican States Water CompanyQOC 7.9NCNOnCino, Inc.QOC 7.9NETCloudflare, Inc.QOC 7.9ORealty Income CorporationQOC 7.9CCKCrown Holdings, Inc.QOC 7.9MUFGMitsubishi UFJ Financial Group, Inc.QOC 7.9NVDANVIDIA CorporationQOC 10.0

Read investment analysis: AWR · NCNO · NET · O · CCK · MUFG · NVDA

What Else Do Investors Ask About First American Financial Corporation’s Valuation?

What is First American Financial Corporation's intrinsic value in 2026?

CirclFi puts First American Financial Corporation (FAF)'s intrinsic value at $51.72 — the median of 6 independent model estimates as of 2026-08-28, ranging from $31.65 to $77.60. The Quality of Company score is 7.9/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is FAF overvalued or undervalued right now?

At $74.47, 1 of 6 active models suggest FAF may be undervalued, while 5 indicate potential overvaluation. The median of all 6 fair value estimates is $51.72, 30.5% below the current price of $74.47 — a consensus view that FAF is overvalued. The assessment depends on which methodology best fits First American Financial Corporation's business model in Insurance - Specialty.

What does a Quality of Company score of 7.9 mean for FAF?

First American Financial Corporation's QOC of 7.9/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores above 7 indicate strong fundamentals and disciplined management.

How many valuation models does CirclFi run on FAF?

CirclFi analyzes FAF with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 6 of 13 are active for this stock. Read the full methodology →

Which valuation models are most bullish and most bearish on FAF?

Of the 6 models currently active on FAF, Regime Cross-Sectional is the most bullish at $77.60 per share, and Markov DDM is the most bearish at $31.65. CirclFi's published fair value for FAF is the median of that range, $51.72, not either extreme. The gap between the two ends equals 89% of the median — a normal spread for a company of this profile. Browse stocks by value-trap risk →

Is FAF a value trap in 2026?

First American Financial Corporation's Value Trap score is 12/100 (SAFE). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap.

Cite this analysis — “According to CirclFi’s 6-model valuation engine, First American Financial Corporation (FAF) has a median fair value of $51.72 — 30.5% below the current price of $74.47 — as of 2026-08-28.” Source: circlfi.com/stock/FAF/ · Methodology
Primary sources for this FAF valuation

Market data for FAF as of ; valuations recomputed .

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