First Advantage Corporation (FA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+188.9%

$68.41

vs $23.68 price

Levered DCF

$55.80

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.68

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2008
P/E	-72.65×	-25.31×	63.73×	30.23×	173.09×	-35.82×	89.55×	33.39×
P/B	1.92×	2.13×	2.63×	1.73×	2.57×	3.79×	-31.96×	1.31×
P/S	1.6×	3.24×	3.13×	2.41×	4.09×	5.91×	6.25×	1.5×
EV / EBITDA	11.49×	57.37×	12.99×	9.16×	16.26×	26.99×	29.16×	9.98×
Gross margin	29.9%	47.8%	49.4%	49.5%	50.6%	48.8%	49.1%	63.8%
Operating margin	9.0%	-7.3%	10.7%	11.6%	9.0%	-0.4%	19.1%	15.5%
Net margin	-2.2%	-12.8%	4.9%	8.0%	2.3%	-16.5%	7.1%	4.5%
Current ratio	2.44×	1.9×	4.39×	5.62×	4.26×	2.84×	2.37×	2×
Debt / equity	1.59×	1.65×	0.63×	0.51×	0.49×	0.99×	-5.74×	0.04×
Interest coverage	0.84×	-1.2×	2.47×	10.25×	2.54×	-0.04×	1.77×	47.54×
Dividend yield	0.0%	0.0%	9.1%	0.0%	0.0%	0.8%	0.0%	0.0%
Payout ratio	-0.4%	-0.2%	583.9%	0.0%	2.0%	-28.4%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2008
Return on equity	-2.7%	-8.4%	4.1%	5.7%	1.4%	-10.6%	-36.4%	3.9%
Return on invested capital	3.7%	-1.6%	4.0%	4.0%	2.3%	-0.1%	16.5%	7.2%
Return on assets	-0.9%	-2.8%	2.3%	3.4%	0.9%	-4.8%	6.3%	3.1%
Free cash flow yield	5.6%	1.0%	5.7%	9.4%	4.3%	1.1%	1.8%	2.7%
Earnings yield	-1.4%	-4.0%	1.6%	3.3%	0.6%	-2.8%	1.1%	3.0%
Enterprise value	$4.4B	$4.8B	$2.7B	$2.1B	$3.2B	$3.6B	$3.5B	$1.2B
Net debt / EBITDA	4.87×	23.91×	1.68×	0.76×	1.34×	4.7×	3.87×	-0.17×
Cash conversion cycle (days)	35	19	26	17	25	18	21	6