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First American FinancialFAF +2.43%77 3-Year EBITDA Growth Rate is 28.40% as of Jun. 2026, which is 100% above its 10-year median of 14.20. GuruFocus rates FAF with a GF Scoreâ„¢ of 77/100 and a GF Valueâ„¢ of $71.20 (Fairly Valued). The stock has 7 warning signs investors should review. Among 293 Insurance companies, First American Financial ranks better than 69.62% on this metric.
During the past 12 months, First American Financial's average EBITDA Per Share Growth Rate was 126.20% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 28.40% per year.
During the past 5 years, the average EBITDA Per Share Growth Rate was -7.80% per year.
During the past 10 years, the average EBITDA Per Share Growth Rate was 3.80% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of First American Financial was 219.30% per year. The lowest was -33.20% per year. And the median was 14.20% per year.
First American Financial (NYSE:FAF) 3-Year EBITDA Growth Rate Explanation
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
First American Financial 3-Year EBITDA Growth Rate Related Terms
FAF vs AXS, ACT, MTG: 3-Year EBITDA Growth Rate Comparison
For the Insurance - Specialty subindustry, First American Financial's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate 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 3-Year EBITDA Growth Rate vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where First American Financial's 3-Year EBITDA Growth Rate falls into.
First American Financial 3-Year EBITDA Growth Rate Calculation
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 28.40% mean?
First American Financial (FAF) has a 3-Year EBITDA Growth Rate of 28.40% as of Jun. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for First American Financial and its competitors. This is 100% above median its historical median of 14.20. According to the industry distribution chart, First American Financial ranks #89 out of 293 companies in the Insurance industry, placing it in the top 30.4%.
Is First American Financial's 3-Year EBITDA Growth Rate too high?
First American Financial's current 3-Year EBITDA Growth Rate of 28.40% is 100% above median its 10-year median of 14.20. The Insurance industry median 3-Year EBITDA Growth Rate is 16.80. First American Financial's value of 28.40% is 69% above this industry median. Based on the distribution chart, First American Financial ranks #89 out of 293 companies in the Insurance industry, which is above the industry midpoint. Overall, First American Financial has a GF Scoreâ„¢ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's 3-Year EBITDA Growth Rate compare to AXS and ACT?
According to the Insurance industry distribution chart, First American Financial ranks #89 out of 293 companies for 3-Year EBITDA Growth Rate. This puts First American Financial in the upper half of its industry. The industry median 3-Year EBITDA Growth Rate is 16.80. First American Financial's value of 28.40% is 69% above this benchmark. While the company's 10-year median is 14.20 vs. the industry median of 16.80, 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 3-Year EBITDA Growth Rate for an Insurance company?
The median 3-Year EBITDA Growth Rate among Insurance companies is 16.80, based on 293 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current 3-Year EBITDA Growth Rate of 28.40% is 69% 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 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for First American Financial and its competitors. For the Insurance industry, the median 3-Year EBITDA Growth Rate is 16.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current 3-Year EBITDA Growth Rate is 28.40%, which is 100% above median its own 10-year median of 14.20. 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 $71.20, compared to a current price of $74.06 — trading 4% above its estimated fair value. The current 3-Year EBITDA Growth Rate is 28.40%, which is 100% above median its 10-year median of 14.20 and 69% above the Insurance industry median of 16.80. First American Financial's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For First American Financial (FAF), the current 3-Year EBITDA Growth Rate is 28.40% 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 $74.06 is trading 4% above its estimated GF Value™ of $71.20.
GuruFocus considers First American Financial to be Fairly Valued.
Key valuation signals for FAF:
3-Year EBITDA Growth Rate: 28.40% (100% above median its 10-year median of 14.20)
GF Value™: $71.20 vs. price of $74.06 (4% above fair value)
Industry Position: 69% above the Insurance median (#89 of 293)
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.
77GF Score
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3-Year EBITDA Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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