First American Stock Market Value
| FAF Stock | USD 69.61 0.83 1.18% |
| Symbol | First |
First American Price To Book Ratio
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First American. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Dividend Share 2.13 | Earnings Share 0.88 | Revenue Per Share 56.505 | Quarterly Revenue Growth (0.05) |
The market value of First American is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First American's value that differs from its market value or its book value, called intrinsic value, which is First American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First American's market value can be influenced by many factors that don't directly affect First American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First American's value and its price as these two are different measures arrived at by different means. Investors typically determine if First American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
First American 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to First American's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of First American.
| 11/04/2024 |
| 12/04/2024 |
If you would invest 0.00 in First American on November 4, 2024 and sell it all today you would earn a total of 0.00 from holding First American or generate 0.0% return on investment in First American over 30 days. First American is related to or competes with Fidelity National, Stewart Information, Old Republic, American Financial, and Reinsurance Group. First American Financial Corporation, through its subsidiaries, provides financial services More
First American Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure First American's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess First American upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.1 | |||
| Information Ratio | 0.032 | |||
| Maximum Drawdown | 6.27 | |||
| Value At Risk | (1.71) | |||
| Potential Upside | 2.05 |
First American Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for First American's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as First American's standard deviation. In reality, there are many statistical measures that can use First American historical prices to predict the future First American's volatility.| Risk Adjusted Performance | 0.1004 | |||
| Jensen Alpha | 0.1051 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0349 | |||
| Treynor Ratio | 0.401 |
First American Backtested Returns
At this point, First American is very steady. First American secures Sharpe Ratio (or Efficiency) of 0.1, which denotes the company had a 0.1% return per unit of risk over the last 3 months. We have found thirty technical indicators for First American, which you can use to evaluate the volatility of the firm. Please confirm First American's Coefficient Of Variation of 788.73, mean deviation of 0.9093, and Downside Deviation of 1.1 to check if the risk estimate we provide is consistent with the expected return of 0.12%. First American has a performance score of 8 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.35, which means possible diversification benefits within a given portfolio. As returns on the market increase, First American's returns are expected to increase less than the market. However, during the bear market, the loss of holding First American is expected to be smaller as well. First American right now shows a risk of 1.17%. Please confirm First American potential upside, skewness, and the relationship between the maximum drawdown and semi variance , to decide if First American will be following its price patterns.
Auto-correlation | 0.83 |
Very good predictability
First American has very good predictability. Overlapping area represents the amount of predictability between First American time series from 4th of November 2024 to 19th of November 2024 and 19th of November 2024 to 4th of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of First American price movement. The serial correlation of 0.83 indicates that around 83.0% of current First American price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.83 | |
| Spearman Rank Test | 0.77 | |
| Residual Average | 0.0 | |
| Price Variance | 2.66 |
First American lagged returns against current returns
Autocorrelation, which is First American stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting First American's stock expected returns. We can calculate the autocorrelation of First American returns to help us make a trade decision. For example, suppose you find that First American has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
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First American regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If First American stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if First American stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in First American stock over time.
Current vs Lagged Prices |
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First American Lagged Returns
When evaluating First American's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of First American stock have on its future price. First American autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, First American autocorrelation shows the relationship between First American stock current value and its past values and can show if there is a momentum factor associated with investing in First American.
Regressed Prices |
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Currently Active Assets on Macroaxis
When determining whether First American is a strong investment it is important to analyze First American's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First American's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:Check out First American Correlation, First American Volatility and First American Alpha and Beta module to complement your research on First American. For more detail on how to invest in First Stock please use our How to Invest in First American guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
First American technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.