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First American FinancialFAF +8.95%73 Debt-to-EBITDA is 1.82 as of Jun. 2026, which is 25% above its 10-year median of 1.46. GuruFocus rates FAF with a GF Score™ of 73/100 and a GF Value™ of $70.67 (Fairly Valued). The stock has 7 warning signs investors should review. Among 322 Insurance companies, First American Financial ranks worse than 69.25% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for First American Financial's Debt-to-EBITDA or its related term are showing as below:
FAF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.04 Med: 1.46 Max: 4.63
Current: 2.04
During the past 13 years, the highest Debt-to-EBITDA Ratio of First American Financial was 4.63. The lowest was 1.04. And the median was 1.46.
FAF's Debt-to-EBITDA is ranked worse than 69.25% of 322
companies
in the Insurance industry
Industry Median: 1.185
vs FAF: 2.04
First American Financial (NYSE:FAF) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
First American Financial Debt-to-EBITDA Related Terms
First American Financial Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Specialty subindustry, First American Financial's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First American Financial Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where First American Financial's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
First American Financial (FAF) has a Debt-to-EBITDA of 1.82 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on First American Financial. This is 25% above median its historical median of 1.46. Over the past decade, First American Financial's Debt-to-EBITDA has ranged from 1.04 to 4.63. According to the industry distribution chart, First American Financial ranks #223 out of 322 companies in the Insurance industry, placing it in the top 69.3%.
Is First American Financial's Debt-to-EBITDA too high?
First American Financial's current Debt-to-EBITDA of 1.82 is 25% above median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 4.63. The Insurance industry median Debt-to-EBITDA is 1.19. First American Financial's value of 1.82 is 53.6% above this industry median. Based on the distribution chart, First American Financial ranks #223 out of 322 companies in the Insurance industry, which is below the industry midpoint. Overall, First American Financial has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's Debt-to-EBITDA compare to ACT and ESNT?
According to the Insurance industry distribution chart, First American Financial ranks #223 out of 322 companies for Debt-to-EBITDA. This places First American Financial in the lower half of its industry. The industry median Debt-to-EBITDA is 1.19. First American Financial's value of 1.82 is 53.6% above this benchmark. Historically, First American Financial's own Debt-to-EBITDA has ranged from 1.04 to 4.63 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 1.19, First American Financial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.19, based on 322 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current Debt-to-EBITDA of 1.82 is 53.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on First American Financial. For the Insurance industry, the median Debt-to-EBITDA is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current Debt-to-EBITDA is 1.82, which is 25% above median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First American Financial stock overvalued right now?
Based on GuruFocus' analysis, First American Financial (FAF) is currently considered Fairly Valued. The stock's GF Value™ is $70.67, compared to a current price of $75.13 — trading 6.3% above its estimated fair value. The current Debt-to-EBITDA is 1.82, which is 25% above median its 10-year median of 1.46 and 53.6% above the Insurance industry median of 1.19. First American Financial's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For First American Financial (FAF), the current Debt-to-EBITDA is 1.82 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First American Financial (FAF) Overvalued in 2026?
Based on GuruFocus' analysis, First American Financial stock appears to be overvalued.
The current stock price of $75.13 is trading 6.3% above its estimated GF Value™ of $70.67.
GuruFocus considers First American Financial to be Fairly Valued.
Key valuation signals for FAF:
Debt-to-EBITDA: 1.82 (25% above median its 10-year median of 1.46)
GF Value™: $70.67 vs. price of $75.13 (6.3% above fair value)
Industry Position: 53.6% above the Insurance median (#223 of 322)
No single metric tells the full story. See the FAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First American Financial Corp is engaged in the business of providing title insurance, settlement services, and other financial services and risk solutions. The group's reportable segments are: Title insurance and services, Home warranty, and Corporate. Maximum revenue is generated from the Title insurance and services segment, which provides title insurance, closing, escrow, and related services domestically and internationally in connection with residential and commercial real estate transactions. This segment also provides solutions to mitigate risk and facilitate real estate transactions, along with offering banking, trust, warehouse lending, mortgage subservicing and wealth management services. The majority of the group's revenue is generated from escrow fees and insurance premiums.
73GF Score
Get the complete analysis for FAF
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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