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First American Financial GF Value Rank

: 10 (As of Today)
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First American Financial has the GF Value Rank of 10.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Insurance - Specialty subindustry, First American Financial's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Insurance industry and Financial Services sector, First American Financial's GF Value Rank distribution charts can be found below:

* The bar in red indicates where First American Financial's GF Value Rank falls into.

First American Financial GF Value Rank Related Terms

Thank you for viewing the detailed overview of First American Financial's GF Value Rank provided by Please click on the following links to see related term pages.

First American Financial Business Description

First American Financial logo
Traded in Other Exchanges
1 First American Way, Santa Ana, CA, USA, 92707-5913
First American Financial Corp is a financial services business providing insurance through two segments: title insurance and related services and specialty insurance. Title insurance and related services include real estate insurance, property closing services, third-party handling of real estate funds (escrow), risk mitigation, real estate data products, and related real estate transaction services. The title insurance sector serves residential and commercial deals. Specialty insurance includes property insurance policies, casualty insurance policies, and home warranties. Nearly all the company's revenue comes from the title insurance and related services segment in the United States.
Spence Marsha A director 1 FIRST AMERICAN WAY SANTA ANA CA 92707
Cornehl Lisa W officer: SVP, Chief Legal Officer 1 FIRST AMERICAN WAY SANTA ANA CA 92886
Latorre Jean C director 1 FIRST AMERICAN WAY SANTA ANA CA 92707
Adams Steven A officer: VP & Chief Accounting Officer 2260 E IMPERIAL HIGHWAY EL SEGUNDO X1 90245
Wyrsch Martha B director
Gilyard Reginald Harold director 1 FIRST AMERICAN WAY SANTA ANA CA 92707
Mccarthy Margaret M director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Oman Mark C director ONE HOME CAMPUS X2401-06X DES MOINES IA 50328
Wajner Matthew F. officer: Chief Accounting Officer 1 FIRST AMERICAN WAY SANTA ANA CA 92707
Anderson Anthony director 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Leavell Christopher Michael officer: COO of Subsidiary 1 FIRST AMERICAN WAY SANTA ANA CA 92707
Doti James L director
Mckee Michael D director
Mckernan Thomas V Jr director
Seaton Mark Edward officer: Senior Vice President 1 FIRST AMERICAN WAY SANTA ANA CA 92707

First American Financial Headlines

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