FAF First American Financial PE ratio, current and historical analysis
The PE ratio for First American Financial stock stands at 39.25 as of May 13, 2025. This is calculated based on the TTM EPS of $1.53 and the stock price of $60.05 per share. A decrease of 20% has been observed in the PE ratio compared to its average of 48.9 of the last four quarters.
FAF PE ratio history
Over the last ten years, the average PE ratio of First American Financial has been 17.11. The current 39.25 P/E ratio is 129% higher than the historical average. Looking back at the last ten years, FAF's PE ratio peaked in the Sep 2024 quarter at 74.17, with a price of $66.01 and an EPS of $0.89. The Sep 2021 quarter marked the lowest point at 5.92, with a price of $67.05 and an EPS of $11.33.
First American Financial PE ratio by year
Maximum annual increase: 204% in 2022
Maximum annual decrease: -50.29% in 2012
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2024 | 49.56 | 59.97% | $62.44 | $1.26 |
| 2023 | 30.98 | 45.58% | $64.44 | $2.08 |
| 2022 | 21.28 | 204% | $52.34 | $2.46 |
| 2021 | 7 | -16.17% | $78.23 | $11.18 |
| 2020 | 8.35 | -10.41% | $51.63 | $6.18 |
| 2019 | 9.32 | -12.08% | $58.32 | $6.26 |
| 2018 | 10.6 | -28.33% | $44.64 | $4.21 |
| 2017 | 14.79 | 25.13% | $56.04 | $3.79 |
| 2016 | 11.82 | -12.77% | $36.63 | $3.1 |
| 2015 | 13.55 | -12.86% | $35.9 | $2.65 |
| 2014 | 15.55 | -4.07% | $33.9 | $2.18 |
| 2013 | 16.21 | 90.48% | $28.2 | $1.74 |
| 2012 | 8.51 | -50.29% | $24.09 | $2.83 |
| 2011 | 17.12 | 39.76% | $12.67 | $0.74 |
| 2010 | 12.25 | N/A | $14.94 | $1.22 |
First American Financial PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2025 | 42.9 | -13.44% | $65.63 | $1.53 |
| Dec 2024 | 49.56 | -33.18% | $62.44 | $1.26 |
| Sep 2024 | 74.17 | 157.09% | $66.01 | $0.89 |
| Jun 2024 | 28.85 | -1.23% | $53.95 | $1.87 |
| Mar 2024 | 29.21 | -5.71% | $61.05 | $2.09 |
| Dec 2023 | 30.98 | 24.47% | $64.44 | $2.08 |
| Sep 2023 | 24.89 | 0.85% | $56.49 | $2.27 |
| Jun 2023 | 24.68 | -11.76% | $57.02 | $2.31 |
| Mar 2023 | 27.97 | 31.44% | $55.66 | $1.99 |
| Dec 2022 | 21.28 | 96.67% | $52.34 | $2.46 |
| Sep 2022 | 10.82 | 68.8% | $46.1 | $4.26 |
| Jun 2022 | 6.41 | -1.38% | $52.92 | $8.25 |
| Mar 2022 | 6.5 | -7.14% | $64.82 | $9.97 |
| Dec 2021 | 7 | 18.24% | $78.23 | $11.18 |
| Sep 2021 | 5.92 | -15.06% | $67.05 | $11.33 |
FAF Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. Growth is a key driver of a stock's value, and our formula directly connects growth to the Fair PE ratio.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
FAF average PE ratio chart
Currently, FAF's PE ratio is higher than its 3, 5 and 10-year averages.
FAF PE vs peers
FAF's PE ratio stands higher than its peer stocks ORI and STC.
| Stock name | PE ratio | Market cap |
|---|---|---|
| ORI Old Republic International Corp | 11.97 | $9.32B |
| ITIC Investors Title Co | 15.38 | $457.16M |
| STC Stewart Information Services Corp | 24.67 | $1.83B |
| FAF First American Financial Corp | 39.25 | $6.13B |
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Frequently asked questions
What is First American Financial's PE ratio?
The price to earnings ratio for FAF stock as of May 13, 2025, stands at 39.25.
What is the 3-year average PE ratio for First American Financial (FAF)?
Over the last 3 years, the average price to earnings ratio for FAF stock is 30.98.
What is the 5-year average PE ratio for First American Financial (FAF)?
Over the last 5 years, the average price to earnings ratio for FAF stock is 21.56.
What is the highest PE ratio for FAF?
The highest quarterly PE ratio in the last ten years has been 74.17 and it was in the Sep 2024 quarter.
How does the current PE ratio for FAF compare to its historical average?
The current PE ratio of FAF is 129% higher than the 10-year historical average.
How is FAF's PE ratio calculated (First American Financial PE ratio formula)?
The P/E ratio is calculated by taking the latest stock price and dividing it by the EPS for the last 12 months. As of today (May 13, 2025), First American Financial's share price is $60.05. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $1.53. Therefore, First American Financial's PE ratio for today is 39.25. PE RATIO(39.25) = STOCK PRICE($60.05) / TTM EPS($1.53)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.