First Advantage Valuation

FA Stock  USD 11.25  0.69  5.78%   
At this time, the firm appears to be undervalued. First Advantage Corp shows a prevailing Real Value of $13.34 per share. The current price of the firm is $11.25. Our model computes the value of First Advantage Corp from reviewing the firm fundamentals such as Current Valuation of 3.98 B, shares outstanding of 174.11 M, and Profit Margin of (0.09) % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting First Advantage's valuation include:
Price Book
1.5979
Enterprise Value
B
Enterprise Value Ebitda
16.0538
Price Sales
1.4225
Forward PE
9.9502
Undervalued
Today
11.25
Please note that First Advantage's price fluctuation is not too volatile at this time. Calculation of the real value of First Advantage Corp is based on 3 months time horizon. Increasing First Advantage's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since First Advantage is currently traded on the exchange, buyers and sellers on that exchange determine the market value of First Stock. However, First Advantage's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  11.25 Real  13.34 Target  17.57 Hype  11.15
The real value of First Stock, also known as its intrinsic value, is the underlying worth of First Advantage Corp Company, which is reflected in its stock price. It is based on First Advantage's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of First Advantage's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
13.34
Real Value
16.30
Upside
Estimating the potential upside or downside of First Advantage Corp helps investors to forecast how First stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of First Advantage more accurately as focusing exclusively on First Advantage's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.270.300.33
Details
Hype
Prediction
LowEstimatedHigh
8.1911.1514.11
Details
10 Analysts
Consensus
LowTarget PriceHigh
15.9917.5719.50
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use First Advantage's intrinsic value based on its ongoing forecasts of First Advantage's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against First Advantage's closest peers. If more than one evaluation category is relevant for First Advantage we suggest using both methods to arrive at a better estimate.

First Advantage Cash

137.75 Million

First Revenue by Product

First Advantage Total Value Analysis

First Advantage Corp is currently forecasted to have takeover value of 3.98 B with market capitalization of 2.08 B, debt of 2.16 B, and cash on hands of 361.19 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the First Advantage fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
3.98 B
2.08 B
2.16 B
361.19 M

First Advantage Investor Information

About 97.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.6. Some equities with similar Price to Book (P/B) outperform the market in the long run. First Advantage Corp has Price/Earnings To Growth (PEG) ratio of 1.61. The entity recorded a loss per share of 0.89. The firm last dividend was issued on the 18th of August 2023. Based on the measurements of operating efficiency obtained from First Advantage's historical financial statements, First Advantage Corp is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities30.8 M32.4 M
Notably Down
Pretty Stable

First Advantage Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of First suggests not a very effective usage of assets in February.
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

First Advantage Profitability Analysis

Based on the measurements of profitability obtained from First Advantage's financial statements, First Advantage Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess First Advantage's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2003-03-31
Previous Quarter
308 K
Current Value
2.6 M
Quarterly Volatility
24.1 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
The current year's Gross Profit Margin is expected to grow to 0.64, whereas Gross Profit is forecasted to decline to about 321.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.640.55
Fairly Up
Very volatile
For First Advantage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Advantage Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Advantage utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Advantage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Advantage over time as well as its relative position and ranking within its peers.

First Advantage Earnings per Share Projection vs Actual

By analyzing First Advantage's earnings estimates, investors can diagnose different trends across First Advantage's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for First Advantage Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
First Advantage is projected to generate 0.296225 in earnings per share on the 31st of December 2026. First Advantage earnings estimates show analyst consensus about projected First Advantage EPS (Earning Per Share). It derives the highest and the lowest estimates based on First Advantage's historical volatility. Many public companies, such as First Advantage, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

First Advantage Ownership Allocation

The majority of First Advantage Corp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in First Advantage Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in First Advantage. Please pay attention to any change in the institutional holdings of First Advantage Corp as this could imply that something significant has changed or is about to change at the company.

First Advantage Profitability Analysis

The company generated the yearly revenue of 860.21 M. Annual Net Loss to common stockholders was (110.27 M) with gross profit of 670.56 M.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates First Advantage's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in First Advantage and how it compares across the competition.

About First Advantage Valuation

The stock valuation mechanism determines First Advantage's current worth on a weekly basis. Our valuation model uses a comparative analysis of First Advantage. We calculate exposure to First Advantage's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of First Advantage's related companies.
Last ReportedProjected for Next Year
Gross Profit473 M321.6 M
Pretax Profit Margin(0.13)(0.15)
Operating Profit Margin(0.08)(0.08)
Net Loss(0.15)(0.14)
Gross Profit Margin 0.55  0.64 

First Advantage Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding148.6 M
Quarterly Earnings Growth Y O Y-0.824
Forward Price Earnings9.9502

First Advantage Current Valuation Indicators

Valuation refers to the process of determining the present value of First Advantage Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value First we look at many different elements of the entity such as First's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as First Advantage, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use First Advantage's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes First Advantage's worth.

Complementary Tools for First Stock analysis

When running First Advantage's price analysis, check to measure First Advantage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Advantage is operating at the current time. Most of First Advantage's value examination focuses on studying past and present price action to predict the probability of First Advantage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Advantage's price. Additionally, you may evaluate how the addition of First Advantage to your portfolios can decrease your overall portfolio volatility.
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