Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
First American FinancialFAF +3.78%75 Debt-to-Equity is 0.50 as of Jun. 2026, which is 28% above its 10-year median of 0.39. GuruFocus rates FAF with a GF Score™ of 75/100 and a GF Value™ of $70.77 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 406 Insurance companies, First American Financial ranks worse than 79.31% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for First American Financial's Debt-to-Equity or its related term are showing as below:
FAF'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.21 Med: 0.39 Max: 0.58
Current: 0.5
During the past 13 years, the highest Debt-to-Equity Ratio of First American Financial was 0.58. The lowest was 0.21. And the median was 0.39.
FAF's Debt-to-Equity is ranked worse than 79.31% of 406
companies
in the Insurance industry
Industry Median: 0.2
vs FAF: 0.50
First American Financial (NYSE:FAF) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
First American Financial Debt-to-Equity Related Terms
First American Financial Debt-to-Equity 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-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where First American Financial's Debt-to-Equity 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.
First American Financial (FAF) has a Debt-to-Equity of 0.50 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on First American Financial and its competitors. This is 28% above median its historical median of 0.39. Over the past decade, First American Financial's Debt-to-Equity has ranged from 0.21 to 0.58. According to the industry distribution chart, First American Financial ranks #322 out of 406 companies in the Insurance industry, placing it in the top 79.3%.
Is First American Financial's Debt-to-Equity too high?
First American Financial's current Debt-to-Equity of 0.50 is 28% above median its 10-year median of 0.39. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 0.58. The Insurance industry median Debt-to-Equity is 0.20. First American Financial's value of 0.50 is 150% above this industry median. Based on the distribution chart, First American Financial ranks #322 out of 406 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, First American Financial has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's Debt-to-Equity compare to AXS and ACT?
According to the Insurance industry distribution chart, First American Financial ranks #322 out of 406 companies for Debt-to-Equity. This places First American Financial in the lower half of its industry. The industry median Debt-to-Equity is 0.20. First American Financial's value of 0.50 is 150% above this benchmark. Historically, First American Financial's own Debt-to-Equity has ranged from 0.21 to 0.58 over the past decade. While the company's 10-year median is 0.39 vs. the industry median of 0.20, 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-Equity for an Insurance company?
The median Debt-to-Equity among Insurance companies is 0.20, based on 406 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current Debt-to-Equity of 0.50 is 150% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on First American Financial and its competitors. For the Insurance industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current Debt-to-Equity is 0.50, which is 28% above median its own 10-year median of 0.39. 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 Modestly Overvalued. The stock's GF Value™ is $70.77, compared to a current price of $79.16 — trading 11.9% above its estimated fair value. The current Debt-to-Equity is 0.50, which is 28% above median its 10-year median of 0.39 and 150% above the Insurance industry median of 0.20. First American Financial's overall GF Score™ is 75/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For First American Financial (FAF), the current Debt-to-Equity is 0.50 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 $79.16 is trading 11.9% above its estimated GF Value™ of $70.77.
GuruFocus considers First American Financial to be Modestly Overvalued.
Key valuation signals for FAF:
Debt-to-Equity: 0.50 (28% above median its 10-year median of 0.39)
GF Value™: $70.77 vs. price of $79.16 (11.9% above fair value)
Industry Position: 150% above the Insurance median (#322 of 406)
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.
75GF Score
Get the complete analysis for FAF
Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FAF has been successfully added to your 
