First American Financial
Financial ratios & Valuation

Forward Multiples (2025 – 2026)

20252026
Price/Earnings ratio
13.3317.44
Price/Sales ratio
1.030.66
Earnings per Share (EPS)
$4.86$3.72

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
15.5113.5111.8014.7910.599.328.366.9921.2931.0069.8110.59
Price/Sales ratio
0.770.750.721.080.871.060.820.940.737.161.140.87
Price/Book Value ratio
1.401.411.341.791.341.491.181.501.201.381.271.49
Price/Cash Flow ratio
10.047.068.279.896.337.225.367.117.1718.9712.196.33
Price/Free Cash Flow ratio
13.759.1011.3312.567.448.185.998.1910.7673.9320.567.44
Price/Earnings Growth ratio
0.610.620.690.660.950.19-6.540.08-0.27-2.0014.230.95
Dividend Yield
2.48%2.78%3.24%2.54%3.55%2.85%3.41%2.45%3.87%3.22%3.42%3.42%
Profitability Indicator Ratios
Gross Profit Margin
82.17%84.13%84.68%84.73%84.33%85.11%84.20%100%69.23%-13.69%90.02%84.33%
Operating Profit Margin
7.89%8.90%9.13%8.35%11.29%1.85%-1.32%4.54%4.28%42.78%4.35%1.85%
Pretax Profit Margin
7.49%8.36%8.56%7.71%10.60%14.59%13.02%17.80%4.28%29.23%1.84%14.59%
Net Profit Margin
4.99%5.56%6.15%7.32%8.25%11.40%9.82%13.45%3.45%23.10%1.64%11.40%
Effective Tax Rate
33.18%33.25%28.08%5.26%21.92%21.56%24.12%23.93%18.71%21.46%9.52%21.56%
Return on Assets
2.28%2.61%2.89%3.24%3.30%4.43%5.43%7.53%1.33%1.29%0.56%4.43%
Return On Equity
9.07%10.44%11.40%12.15%12.68%16.00%14.17%21.52%5.63%4.47%1.89%16.00%
Return on Capital Employed
3.69%4.29%4.41%3.78%4.60%0.74%-0.76%2.64%1.68%2.46%1.67%0.74%
Liquidity Ratios
Current Ratio
0.320.050.050.050.050.05N/AN/AN/AN/A1.810.05
Quick Ratio
6.234.739.8111.7114.189.088.777.466.387.391.819.08
Cash ratio
5.143.873.444.555.303.072.221.964.747.391.553.07
Days of Sales Outstanding
21.5818.1019.6219.6726.2219.0958.4017.4518.67N/A28.8926.22
Days of Inventory outstanding
N/AN/A-694.39-820.21-853.19-932.88-851.69N/A1.33KN/AN/A-853.19
Operating Cycle
21.5818.10-674.77-800.54-826.96-913.79-793.29N/A1.35KN/A28.89-826.96
Days of Payables Outstanding
11.4924.8025.3328.3619.0823.1518.27N/A7.9521.65583.5319.08
Cash Conversion Cycle
10.08-6.70-700.11-828.90-846.05-936.95-811.56N/A1.34K-21.65-554.64-846.05
Debt Ratios
Debt Ratio
0.050.050.060.050.030.05N/A0.100.050.080.160.03
Debt Equity Ratio
0.220.200.240.210.150.20N/A0.280.230.280.530.15
Long-term Debt to Capitalization
0.180.170.190.170.130.16N/A0.220.180.220.260.13
Total Debt to Capitalization
0.180.170.190.170.130.16N/A0.220.180.220.340.13
Interest Coverage Ratio
12.139.8910.6411.7511.5714.7912.11N/AN/AN/A1.7614.79
Cash Flow to Debt Ratio
0.610.950.660.861.381.02N/A0.740.710.250.191.02
Company Equity Multiplier
3.973.993.933.753.843.602.602.854.213.463.253.60
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.070.100.080.100.130.140.150.130.100.370.090.14
Free Cash Flow / Operating Cash Flow Ratio
0.730.770.720.780.850.880.890.860.660.250.580.88
Cash Flow Coverage Ratio
0.610.950.660.861.381.02N/A0.740.710.250.191.02
Short Term Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0.60N/A
Dividend Payout Ratio
38.51%37.67%38.35%37.65%37.61%26.63%28.54%17.16%82.50%99.90%236.74%37.61%