FAF (First American Financial) EBIT: $1,152 Mil (TTM As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

FAF First American Financial Corp FAF
73 GF Score
Price $75.13
GF Value $70.67
Valuation Fairly Valued
! 7 Warning Signs
View Full Analysis

What is First American Financial EBIT?

First American Financial FAF +8.95% 73 EBIT is $1,152 Mil as of Jun. 2026. 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.

First American Financial's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2026 was $330 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2026 was $1,152 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. First American Financial's annualized ROC % for the quarter that ended in Jun. 2026 was 6.25%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. First American Financial's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 14.89%.


First American Financial  (NYSE:FAF) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

First American Financial's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=1318.4 * ( 1 - 22.82% )/( (17194.9 + 15361.265)/ 2 )
=1017.54112/16278.0825
=6.25 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=17936.6 - 833.6 - ( 0 - 5% * 1838 )
=17194.9

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=18941 - 957.5 - ( 2728.1 - 5% * 2117.3 )
=15361.265

Note: The EBIT data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

ROC (Joel Greenblatt) % does not apply to banks and insurance companies.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

First American Financial's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2026 )
=1151.5/7731.873
=14.89 %

* 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 EBIT Related Terms


First American Financial EBIT Historical Data

* Premium members only.

The historical data trend for First American Financial's EBIT can be seen below:

* 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 EBIT Chart

First American Financial Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,713.70 418.70 406.90 315.00 983.20

First American Financial Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 233.20 286.90 331.30 203.70 329.60

FAF vs ACT, ESNT, MTG: EBIT Comparison

For the Insurance - Specialty subindustry, First American Financial's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Insurance Industry

For the Insurance industry and Financial Services sector, First American Financial's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where First American Financial's EV-to-EBIT falls into.


FAF
73GF Score
First American Financial Corp FAF
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

First American Financial EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,152 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $1,152 Mil mean?
First American Financial (FAF) has a EBIT of $1,152 Mil as of Jun. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on First American Financial.
Is First American Financial's EBIT too high?
First American Financial's current EBIT is $1,152 Mil. 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 EBIT compare to ACT and ESNT?
First American Financial's EBIT of $1,152 Mil can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Insurance company?
A good EBIT depends on the Insurance industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on First American Financial. First American Financial's current EBIT is $1,152 Mil. 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 EBIT is $1,152 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For First American Financial (FAF), the current EBIT is $1,152 Mil 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:

  • EBIT: $1,152 Mil
  • GF Value™: $70.67 vs. price of $75.13 (6.3% above fair value)
  • GF Score™: 73/100 with 7 warning signs

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 Business Description

Other Exchanges Y1F:Germany
Address 1 First American Way, Santa Ana, CA, USA, 92707-5913
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

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$75.13
Price
$70.67
GF Value