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First American FinancialFAF +8.95%73 5-Year Yield-on-Cost % is 3.55 as of Jul. 26, 2026, which is 10% below its 10-year median of 3.94. 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 422 Insurance companies, First American Financial ranks worse than 54.74% on this metric.
The historical rank and industry rank for First American Financial's 5-Year Yield-on-Cost % or its related term are showing as below:
FAF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.81 Med: 3.94 Max: 5.85
Current: 3.55
During the past 13 years, First American Financial's highest Yield on Cost was 5.85. The lowest was 2.81. And the median was 3.94.
FAF's 5-Year Yield-on-Cost % is ranked worse than 54.74% of 422
companies
in the Insurance industry
Industry Median: 3.88
vs FAF: 3.55
First American Financial (NYSE:FAF) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
First American Financial 5-Year Yield-on-Cost % Related Terms
FAF vs ACT, ESNT, MTG: 5-Year Yield-on-Cost % Comparison
For the Insurance - Specialty subindustry, First American Financial's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where First American Financial's 5-Year Yield-on-Cost % falls into.
First American Financial 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
First American Financial (FAF) has a 5-Year Yield-on-Cost % of 3.55 as of Jul. 26, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on First American Financial and its competitors. This is 10% below median its historical median of 3.94. Over the past decade, First American Financial's 5-Year Yield-on-Cost % has ranged from 2.81 to 5.85. According to the industry distribution chart, First American Financial ranks #231 out of 422 companies in the Insurance industry, placing it in the top 54.7%.
Is First American Financial's 5-Year Yield-on-Cost % too high?
First American Financial's current 5-Year Yield-on-Cost % of 3.55 is 10% below median its 10-year median of 3.94. Over the past 10 years, this metric has ranged from a low of 2.81 to a high of 5.85. The Insurance industry median 5-Year Yield-on-Cost % is 3.88. First American Financial's value of 3.55 is 8.5% below this industry median. Based on the distribution chart, First American Financial ranks #231 out of 422 companies in the Insurance industry, which is below 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 5-Year Yield-on-Cost % compare to ACT and ESNT?
According to the Insurance industry distribution chart, First American Financial ranks #231 out of 422 companies for 5-Year Yield-on-Cost %. This places First American Financial in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.88. First American Financial's value of 3.55 is 8.5% below this benchmark. Historically, First American Financial's own 5-Year Yield-on-Cost % has ranged from 2.81 to 5.85 over the past decade. While the company's 10-year median is 3.94 vs. the industry median of 3.88, First American Financial has consistently been below 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 5-Year Yield-on-Cost % for an Insurance company?
The median 5-Year Yield-on-Cost % among Insurance companies is 3.88, based on 422 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current 5-Year Yield-on-Cost % of 3.55 is 8.5% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on First American Financial and its competitors. For the Insurance industry, the median 5-Year Yield-on-Cost % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current 5-Year Yield-on-Cost % is 3.55, which is 10% below median its own 10-year median of 3.94. 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 5-Year Yield-on-Cost % is 3.55, which is 10% below median its 10-year median of 3.94 and 8.5% below the Insurance industry median of 3.88. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For First American Financial (FAF), the current 5-Year Yield-on-Cost % is 3.55 as of Jul. 26, 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:
5-Year Yield-on-Cost %: 3.55 (10% below median its 10-year median of 3.94)
GF Value™: $70.67 vs. price of $75.13 (6.3% above fair value)
Industry Position: 8.5% below the Insurance median (#231 of 422)
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
Get the complete analysis for FAF
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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