Intrinsic value of First American Financial - FAF

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$39.52

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$39.52

 
Intrinsic value

$119.73

 
Up/down potential

+203%

 
Rating

str. buy

 
Value-price divergence* premium content

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Our model is not good at valuating stocks of financial companies, such as FAF.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of FAF stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.75
  10.80
  10.22
  9.70
  9.23
  8.81
  8.42
  8.08
  7.77
  7.50
  7.25
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.71
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
Revenue, $m
  0
  6,178
  6,810
  7,470
  8,159
  8,878
  9,626
  10,404
  11,213
  12,053
  12,927
  13,834
  14,778
  15,759
  16,779
  17,841
  18,946
  20,097
  21,296
  22,546
  23,850
  25,211
  26,631
  28,115
  29,665
  31,286
  32,980
  34,753
  36,608
  38,549
  40,582
Variable operating expenses, $m
 
  5,413
  5,956
  6,524
  7,117
  7,735
  8,378
  9,046
  9,742
  10,465
  11,216
  11,894
  12,705
  13,549
  14,426
  15,339
  16,289
  17,278
  18,309
  19,384
  20,505
  21,675
  22,897
  24,172
  25,505
  26,898
  28,355
  29,879
  31,474
  33,143
  34,891
Fixed operating expenses, $m
 
  179
  184
  188
  193
  198
  203
  208
  213
  219
  224
  230
  235
  241
  247
  253
  260
  266
  273
  280
  287
  294
  301
  309
  317
  324
  333
  341
  349
  358
  367
Total operating expenses, $m
  5,066
  5,592
  6,140
  6,712
  7,310
  7,933
  8,581
  9,254
  9,955
  10,684
  11,440
  12,124
  12,940
  13,790
  14,673
  15,592
  16,549
  17,544
  18,582
  19,664
  20,792
  21,969
  23,198
  24,481
  25,822
  27,222
  28,688
  30,220
  31,823
  33,501
  35,258
Operating income, $m
  510
  585
  669
  757
  849
  945
  1,045
  1,149
  1,258
  1,370
  1,487
  1,711
  1,837
  1,969
  2,106
  2,249
  2,397
  2,552
  2,714
  2,882
  3,058
  3,242
  3,433
  3,634
  3,844
  4,063
  4,293
  4,533
  4,784
  5,048
  5,324
EBITDA, $m
  609
  723
  811
  903
  999
  1,099
  1,203
  1,312
  1,425
  1,542
  1,664
  1,791
  1,923
  2,061
  2,204
  2,353
  2,508
  2,669
  2,838
  3,014
  3,197
  3,389
  3,589
  3,798
  4,017
  4,246
  4,485
  4,736
  4,998
  5,273
  5,561
Interest expense (income), $m
  30
  34
  63
  93
  125
  158
  192
  228
  266
  305
  345
  387
  431
  476
  523
  572
  623
  676
  731
  789
  849
  912
  977
  1,045
  1,117
  1,191
  1,269
  1,350
  1,436
  1,525
  1,618
Earnings before tax, $m
  478
  551
  607
  664
  725
  787
  853
  921
  992
  1,065
  1,142
  1,323
  1,406
  1,493
  1,583
  1,676
  1,774
  1,876
  1,982
  2,093
  2,209
  2,330
  2,456
  2,589
  2,727
  2,872
  3,024
  3,182
  3,349
  3,523
  3,706
Tax expense, $m
  135
  149
  164
  179
  196
  213
  230
  249
  268
  288
  308
  357
  380
  403
  427
  453
  479
  506
  535
  565
  596
  629
  663
  699
  736
  775
  816
  859
  904
  951
  1,001
Net income, $m
  343
  403
  443
  485
  529
  575
  623
  672
  724
  778
  834
  966
  1,027
  1,090
  1,155
  1,224
  1,295
  1,369
  1,447
  1,528
  1,612
  1,701
  1,793
  1,890
  1,991
  2,096
  2,207
  2,323
  2,445
  2,572
  2,705

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,832
  9,791
  10,792
  11,838
  12,931
  14,069
  15,255
  16,488
  17,770
  19,102
  20,486
  21,925
  23,420
  24,974
  26,591
  28,274
  30,025
  31,849
  33,750
  35,731
  37,797
  39,954
  42,205
  44,556
  47,013
  49,581
  52,267
  55,076
  58,016
  61,092
  64,314
Adjusted assets (=assets-cash), $m
  8,832
  9,791
  10,792
  11,838
  12,931
  14,069
  15,255
  16,488
  17,770
  19,102
  20,486
  21,925
  23,420
  24,974
  26,591
  28,274
  30,025
  31,849
  33,750
  35,731
  37,797
  39,954
  42,205
  44,556
  47,013
  49,581
  52,267
  55,076
  58,016
  61,092
  64,314
Revenue / Adjusted assets
  0.000
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
  0.631
Average production assets, $m
  486
  538
  592
  650
  710
  772
  837
  905
  975
  1,049
  1,125
  1,204
  1,286
  1,371
  1,460
  1,552
  1,648
  1,748
  1,853
  1,962
  2,075
  2,193
  2,317
  2,446
  2,581
  2,722
  2,869
  3,024
  3,185
  3,354
  3,531
Working capital, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total debt, $m
  737
  1,365
  2,025
  2,714
  3,434
  4,185
  4,966
  5,778
  6,623
  7,501
  8,413
  9,361
  10,347
  11,371
  12,437
  13,545
  14,700
  15,902
  17,154
  18,460
  19,821
  21,242
  22,726
  24,276
  25,895
  27,587
  29,357
  31,208
  33,145
  35,173
  37,296
Total liabilities, $m
  5,824
  6,452
  7,112
  7,801
  8,521
  9,272
  10,053
  10,865
  11,710
  12,588
  13,500
  14,448
  15,434
  16,458
  17,524
  18,632
  19,787
  20,989
  22,241
  23,547
  24,908
  26,329
  27,813
  29,363
  30,982
  32,674
  34,444
  36,295
  38,232
  40,260
  42,383
Total equity, $m
  3,008
  3,339
  3,680
  4,037
  4,409
  4,798
  5,202
  5,622
  6,059
  6,514
  6,986
  7,476
  7,986
  8,516
  9,068
  9,641
  10,239
  10,861
  11,509
  12,184
  12,889
  13,624
  14,392
  15,194
  16,031
  16,907
  17,823
  18,781
  19,783
  20,833
  21,931
Total liabilities and equity, $m
  8,832
  9,791
  10,792
  11,838
  12,930
  14,070
  15,255
  16,487
  17,769
  19,102
  20,486
  21,924
  23,420
  24,974
  26,592
  28,273
  30,026
  31,850
  33,750
  35,731
  37,797
  39,953
  42,205
  44,557
  47,013
  49,581
  52,267
  55,076
  58,015
  61,093
  64,314
Debt-to-equity ratio
  0.245
  0.410
  0.550
  0.670
  0.780
  0.870
  0.950
  1.030
  1.090
  1.150
  1.200
  1.250
  1.300
  1.340
  1.370
  1.400
  1.440
  1.460
  1.490
  1.520
  1.540
  1.560
  1.580
  1.600
  1.620
  1.630
  1.650
  1.660
  1.680
  1.690
  1.700
Adjusted equity ratio
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  343
  403
  443
  485
  529
  575
  623
  672
  724
  778
  834
  966
  1,027
  1,090
  1,155
  1,224
  1,295
  1,369
  1,447
  1,528
  1,612
  1,701
  1,793
  1,890
  1,991
  2,096
  2,207
  2,323
  2,445
  2,572
  2,705
Depreciation, amort., depletion, $m
  99
  138
  141
  145
  149
  154
  158
  162
  167
  172
  177
  81
  86
  92
  98
  104
  111
  117
  124
  132
  139
  147
  155
  164
  173
  183
  193
  203
  214
  225
  237
Funds from operations, $m
  449
  540
  584
  630
  678
  728
  780
  835
  891
  950
  1,011
  1,047
  1,113
  1,182
  1,253
  1,328
  1,406
  1,487
  1,571
  1,660
  1,752
  1,848
  1,949
  2,054
  2,164
  2,279
  2,400
  2,526
  2,658
  2,797
  2,942
Change in working capital, $m
  -40
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from operations, $m
  489
  568
  584
  630
  678
  728
  780
  835
  891
  950
  1,011
  1,047
  1,113
  1,182
  1,253
  1,328
  1,406
  1,487
  1,571
  1,660
  1,752
  1,848
  1,949
  2,054
  2,164
  2,279
  2,400
  2,526
  2,658
  2,797
  2,942
Maintenance CAPEX, $m
  0
  -33
  -36
  -40
  -44
  -48
  -52
  -56
  -61
  -65
  -70
  -75
  -81
  -86
  -92
  -98
  -104
  -111
  -117
  -124
  -132
  -139
  -147
  -155
  -164
  -173
  -183
  -193
  -203
  -214
  -225
New CAPEX, $m
  -132
  -52
  -55
  -57
  -60
  -63
  -65
  -68
  -70
  -73
  -76
  -79
  -82
  -85
  -89
  -92
  -96
  -100
  -104
  -109
  -113
  -118
  -124
  -129
  -135
  -141
  -147
  -154
  -161
  -169
  -177
Cash from investing activities, $m
  -610
  -85
  -91
  -97
  -104
  -111
  -117
  -124
  -131
  -138
  -146
  -154
  -163
  -171
  -181
  -190
  -200
  -211
  -221
  -233
  -245
  -257
  -271
  -284
  -299
  -314
  -330
  -347
  -364
  -383
  -402
Free cash flow, $m
  -121
  483
  493
  533
  575
  618
  664
  711
  760
  811
  865
  892
  950
  1,010
  1,073
  1,138
  1,205
  1,276
  1,350
  1,426
  1,507
  1,590
  1,678
  1,769
  1,865
  1,965
  2,070
  2,179
  2,294
  2,414
  2,541
Issuance/(repayment) of debt, $m
  155
  628
  659
  690
  720
  750
  781
  813
  845
  878
  912
  948
  985
  1,025
  1,066
  1,109
  1,154
  1,202
  1,252
  1,306
  1,362
  1,421
  1,484
  1,550
  1,619
  1,692
  1,770
  1,851
  1,937
  2,028
  2,123
Issuance/(repurchase) of shares, $m
  3
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  239
  628
  659
  690
  720
  750
  781
  813
  845
  878
  912
  948
  985
  1,025
  1,066
  1,109
  1,154
  1,202
  1,252
  1,306
  1,362
  1,421
  1,484
  1,550
  1,619
  1,692
  1,770
  1,851
  1,937
  2,028
  2,123
Total cash flow (excl. dividends), $m
  111
  1,112
  1,153
  1,223
  1,295
  1,368
  1,445
  1,523
  1,605
  1,689
  1,777
  1,841
  1,936
  2,035
  2,138
  2,246
  2,359
  2,478
  2,602
  2,732
  2,868
  3,011
  3,161
  3,319
  3,484
  3,657
  3,839
  4,031
  4,231
  4,442
  4,663
Retained Cash Flow (-), $m
  -258
  -331
  -341
  -357
  -373
  -388
  -404
  -420
  -437
  -454
  -472
  -491
  -510
  -530
  -551
  -574
  -597
  -622
  -648
  -676
  -705
  -735
  -768
  -802
  -838
  -876
  -916
  -958
  -1,002
  -1,049
  -1,099
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  781
  811
  866
  922
  980
  1,040
  1,103
  1,168
  1,235
  1,305
  1,350
  1,426
  1,505
  1,587
  1,673
  1,762
  1,856
  1,954
  2,056
  2,164
  2,276
  2,394
  2,517
  2,646
  2,782
  2,924
  3,073
  3,229
  3,393
  3,565
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  749
  743
  754
  759
  760
  755
  745
  730
  709
  684
  641
  608
  572
  533
  491
  448
  404
  360
  317
  275
  235
  199
  165
  135
  108
  85
  66
  50
  37
  27
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; maintains, manages, and provides access to title plant records and images; evidence of title; and offers banking, trust, document custodial, and investment advisory services, as well as provides products, services, and solutions for the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions. It offers its products through a network of direct operations and agents in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The Specialty Insurance segment provides property and casualty insurance, including coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage in 47 states. It also sells home warranty products comprising residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period in 39 states and the District of Columbia; and offers auto insurance products. This segment markets its property and casualty insurance products through direct distribution channels, including cross-selling through its existing closing-service activities, as well as through a network of independent brokers. First American Financial Corporation was incorporated in 2008 and is based in Santa Ana, California.

FINANCIAL RATIOS  of  First American Financial (FAF)

Valuation Ratios
P/E Ratio 12.7
Price to Sales 0.8
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 8.9
Price to Free Cash Flow 12.2
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6.5%
Cap. Spend. - 3 Yr. Gr. Rate 8.7%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 24.5%
Total Debt to Equity 24.5%
Interest Coverage 17
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 9.7%
Ret/ On T. Cap. - 3 Yr. Avg. 8.8%
Return On Equity 11.9%
Return On Equity - 3 Yr. Avg. 10.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 10.9%
EBITDA Margin - 3 Yr. Avg. 10.4%
Operating Margin 9.1%
Oper. Margin - 3 Yr. Avg. 8.7%
Pre-Tax Margin 8.6%
Pre-Tax Margin - 3 Yr. Avg. 8.1%
Net Profit Margin 6.2%
Net Profit Margin - 3 Yr. Avg. 5.6%
Effective Tax Rate 28.2%
Eff/ Tax Rate - 3 Yr. Avg. 31.6%
Payout Ratio 38.5%

FAF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FAF stock intrinsic value calculation we used $5576 million for the last fiscal year's total revenue generated by First American Financial. The default revenue input number comes from 2016 income statement of First American Financial. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FAF stock valuation model: a) initial revenue growth rate of 10.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for FAF is calculated based on our internal credit rating of First American Financial, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of First American Financial.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FAF stock the variable cost ratio is equal to 87.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $175 million in the base year in the intrinsic value calculation for FAF stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.6% for First American Financial.

Corporate tax rate of 27% is the nominal tax rate for First American Financial. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FAF stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FAF are equal to 8.7%.

Life of production assets of 14.9 years is the average useful life of capital assets used in First American Financial operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FAF is equal to 0%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3008 million for First American Financial - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 110.234 million for First American Financial is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of First American Financial at the current share price and the inputted number of shares is $4.4 billion.


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