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First American FinancialFAF +8.95%73 EBITDA Margin % is 18.10% as of Jun. 2026, which is 48% above its 10-year median of 12.22. 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 372 Insurance companies, First American Financial ranks better than 57.53% on this metric.
First American Financial (NYSE:FAF) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
First American Financial EBITDA Margin % Related Terms
First American Financial EBITDA Margin % 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 EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where First American Financial's EBITDA Margin % 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 EBITDA Margin % of 18.10% as of Jun. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on First American Financial and its competitors. This is 48% above median its historical median of 12.22. Over the past decade, First American Financial's EBITDA Margin % has ranged from 7.72 to 20.32. According to the industry distribution chart, First American Financial ranks #158 out of 372 companies in the Insurance industry, placing it in the top 42.5%.
Is First American Financial's EBITDA Margin % too high?
First American Financial's current EBITDA Margin % of 18.10% is 48% above median its 10-year median of 12.22. Over the past 10 years, this metric has ranged from a low of 7.72 to a high of 20.32. The Insurance industry median EBITDA Margin % is 14.96. First American Financial's value of 18.10% is 21% above this industry median. Based on the distribution chart, First American Financial ranks #158 out of 372 companies in the Insurance industry, which is above 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 EBITDA Margin % compare to ACT and ESNT?
According to the Insurance industry distribution chart, First American Financial ranks #158 out of 372 companies for EBITDA Margin %. This puts First American Financial in the upper half of its industry. The industry median EBITDA Margin % is 14.96. First American Financial's value of 18.10% is 21% above this benchmark. Historically, First American Financial's own EBITDA Margin % has ranged from 7.72 to 20.32 over the past decade. While the company's 10-year median is 12.22 vs. the industry median of 14.96, 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 EBITDA Margin % for an Insurance company?
The median EBITDA Margin % among Insurance companies is 14.96, based on 372 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current EBITDA Margin % of 18.10% is 21% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on First American Financial and its competitors. For the Insurance industry, the median EBITDA Margin % is 14.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current EBITDA Margin % is 18.10%, which is 48% above median its own 10-year median of 12.22. 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 EBITDA Margin % is 18.10%, which is 48% above median its 10-year median of 12.22 and 21% above the Insurance industry median of 14.96. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For First American Financial (FAF), the current EBITDA Margin % is 18.10% 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:
EBITDA Margin %: 18.10% (48% above median its 10-year median of 12.22)
GF Value™: $70.67 vs. price of $75.13 (6.3% above fair value)
Industry Position: 21% above the Insurance median (#158 of 372)
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
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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