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First American FinancialFAF +0.92%67 EV-to-OCF is 7.44 as of Aug. 12, 2026, which is 5% below its 10-year median of 7.86. GuruFocus rates FAF with a GF Score™ of 67/100 and a GF Value™ of $70.44 (Fairly Valued). The stock has 7 warning signs investors should review. Among 505 Insurance companies, First American Financial ranks worse than 54.46% on this metric.
The historical rank and industry rank for First American Financial's EV-to-OCF or its related term are showing as below:
FAF'
s EV-to-OCF Range Over the Past 10 Years
Min: 4.14 Med: 7.86 Max: 14.14
Current: 7.44
During the past 13 years, the highest EV-to-OCF of First American Financial was 14.14. The lowest was 4.14. And the median was 7.86.
FAF's EV-to-OCF is ranked worse than 54.46% of 505
companies
in the Insurance industry
Industry Median: 6.57
vs FAF: 7.44
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 American Financial (NYSE:FAF) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 American Financial's PE Ratio (TTM) for today is calculated as:
First American Financial's share price for today is $72.35.
First American Financial'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 $7.220.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
First American Financial EV-to-OCF Related Terms
First American Financial EV-to-OCF 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 EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where First American Financial's EV-to-OCF falls into.
First American Financial's current Enterprise Value is $7,471 Mil.
First American Financial's Cash Flow from Operations 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 $1,004 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 American Financial (FAF) has a EV-to-OCF of 7.44 as of Aug. 12, 2026. This is near median its historical median of 7.86. Over the past decade, First American Financial's EV-to-OCF has ranged from 4.14 to 14.14. According to the industry distribution chart, First American Financial ranks #275 out of 505 companies in the Insurance industry, placing it in the top 54.5%.
Is First American Financial's EV-to-OCF too high?
First American Financial's current EV-to-OCF of 7.44 is near median its 10-year median of 7.86. Over the past 10 years, this metric has ranged from a low of 4.14 to a high of 14.14. The Insurance industry median EV-to-OCF is 6.57. First American Financial's value of 7.44 is 13.2% above this industry median. Based on the distribution chart, First American Financial ranks #275 out of 505 companies in the Insurance industry, which is below the industry midpoint. Overall, First American Financial has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's EV-to-OCF compare to AXS and ACT?
According to the Insurance industry distribution chart, First American Financial ranks #275 out of 505 companies for EV-to-OCF. This places First American Financial in the lower half of its industry. The industry median EV-to-OCF is 6.57. First American Financial's value of 7.44 is 13.2% above this benchmark. Historically, First American Financial's own EV-to-OCF has ranged from 4.14 to 14.14 over the past decade. While the company's 10-year median is 7.86 vs. the industry median of 6.57, 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 EV-to-OCF for an Insurance company?
The median EV-to-OCF among Insurance companies is 6.57, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current EV-to-OCF of 7.44 is 13.2% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Insurance industry, the median EV-to-OCF is 6.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current EV-to-OCF is 7.44, which is near median its own 10-year median of 7.86. 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 $70.44, compared to a current price of $72.35 — trading 2.7% above its estimated fair value. The current EV-to-OCF is 7.44, which is near median its 10-year median of 7.86 and 13.2% above the Insurance industry median of 6.57. First American Financial's overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For First American Financial (FAF), the current EV-to-OCF is 7.44 as of Aug. 12, 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 $72.35 is trading 2.7% above its estimated GF Value™ of $70.44.
GuruFocus considers First American Financial to be Fairly Valued.
Key valuation signals for FAF:
EV-to-OCF: 7.44 (near median its 10-year median of 7.86)
GF Value™: $70.44 vs. price of $72.35 (2.7% above fair value)
Industry Position: 13.2% above the Insurance median (#275 of 505)
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.
67GF Score
Get the complete analysis for FAF
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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