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First AdvantageFA +0.81%60 EV-to-EBITDA is 12.78 as of Aug. 19, 2026, which is 4% below its 10-year median of 13.26. GuruFocus rates FA with a GF Score™ of 60/100 and a GF Value™ of $25.35 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 904 Business Services companies, First Advantage ranks worse than 75.33% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, First Advantage's enterprise value is $5,434 Mil.
First Advantage's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was $425 Mil. Therefore, First Advantage's EV-to-EBITDA for today is 12.78.
The historical rank and industry rank for First Advantage's EV-to-EBITDA or its related term are showing as below:
FA'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.55 Med: 13.26 Max: 62.92
Current: 12.78
During the past 13 years, the highest EV-to-EBITDA of First Advantage was 62.92. The lowest was 7.55. And the median was 13.26.
FA's EV-to-EBITDA is ranked worse than 75.33% of 904
companies
in the Business Services industry
Industry Median: 7.61
vs FA: 12.78
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
First Advantage's PE Ratio (TTM) for today is calculated as:
First Advantage's share price for today is $21.14.
First Advantage's Earnings per Share (Diluted) 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 $0.140.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for First Advantage's EV-to-EBITDA 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.
For the Specialty Business Services subindustry, First Advantage's EV-to-EBITDA, along with its competitors' market caps and EV-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 Advantage EV-to-EBITDA vs Business Services Industry
For the Business Services industry and Industrials sector, First Advantage's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where First Advantage's EV-to-EBITDA falls into.
First Advantage's current Enterprise Value is $5,434 Mil.
First Advantage's EBITDA 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 $425 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.
First Advantage (FA) has a EV-to-EBITDA of 12.78 as of Aug. 19, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on First Advantage. This is near median its historical median of 13.26. Over the past decade, First Advantage's EV-to-EBITDA has ranged from 7.55 to 62.92. According to the industry distribution chart, First Advantage ranks #681 out of 904 companies in the Business Services industry, placing it in the top 75.3%.
Is First Advantage's EV-to-EBITDA too high?
First Advantage's current EV-to-EBITDA of 12.78 is near median its 10-year median of 13.26. Over the past 10 years, this metric has ranged from a low of 7.55 to a high of 62.92. The Business Services industry median EV-to-EBITDA is 7.61. First Advantage's value of 12.78 is 67.9% above this industry median. Based on the distribution chart, First Advantage ranks #681 out of 904 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, First Advantage has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Advantage's EV-to-EBITDA compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #681 out of 904 companies for EV-to-EBITDA. This places First Advantage in the lower half of its industry. The industry median EV-to-EBITDA is 7.61. First Advantage's value of 12.78 is 67.9% above this benchmark. Historically, First Advantage's own EV-to-EBITDA has ranged from 7.55 to 62.92 over the past decade. While the company's 10-year median is 13.26 vs. the industry median of 7.61, First Advantage 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 EV-to-EBITDA for a Business Services company?
The median EV-to-EBITDA among Business Services companies is 7.61, based on 904 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Advantage's current EV-to-EBITDA of 12.78 is 67.9% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on First Advantage. For the Business Services industry, the median EV-to-EBITDA is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current EV-to-EBITDA is 12.78, which is near median its own 10-year median of 13.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Advantage stock overvalued right now?
Based on GuruFocus' analysis, First Advantage (FA) is currently considered Modestly Undervalued. The stock's GF Value™ is $25.35, compared to a current price of $21.14 — trading 16.6% below its estimated fair value. The current EV-to-EBITDA is 12.78, which is near median its 10-year median of 13.26 and 67.9% above the Business Services industry median of 7.61. First Advantage's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For First Advantage (FA), the current EV-to-EBITDA is 12.78 as of Aug. 19, 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 Advantage (FA) Overvalued in 2026?
Based on GuruFocus' analysis, First Advantage stock appears to be undervalued.
The current stock price of $21.14 is trading 16.6% below its estimated GF Value™ of $25.35.
GuruFocus considers First Advantage to be Modestly Undervalued.
Key valuation signals for FA:
EV-to-EBITDA: 12.78 (near median its 10-year median of 13.26)
GF Value™: $25.35 vs. price of $21.14 (16.6% below fair value)
Industry Position: 67.9% above the Business Services median (#681 of 904)
No single metric tells the full story. See the FA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Advantage Corp is a provider of software and data in the Human Resources technology industry. The company provides end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. It combines AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data. Its reportable segments are First Advantage Americas, First Advantage International, and Sterling. The company generates maximum revenue from the Sterling segment, which provides similar services as compared to First Advantage's Americas and International segments on a global basis. Geographically, the company generates the majority of its revenue from the United States.
60GF Score
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