Stock fact sheet · data as of
First Advantage Corporation (FA): fair value, margin of safety and Wheel Score
Industrials · Specialty Business Services · United States · High Growth
Is FA undervalued?
At 20.08 (close of 16 Oct 2026), FA trades 18% over the GLS average fair value of 17.04. 2 of the 8 models land above the price and 6 below. A negative margin of safety costs Value points in the Wheel Score (5 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
There is a wide gap between EPV (1.63) and DCF (67.70). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FA under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for FA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 67.70 | +237% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 4.98 | -75% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 6.34 | -68% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.62 | -87% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 8.58 | -57% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 30.19 | +50% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 14.28 | -29% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1.63 | -92% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -11.42 | -157% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 25.00 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
First Advantage Corporation scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 1.9/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC -1.0%, ROE -2.7%, ROA -0.9% - with debt at 1.59 times equity and a free-cash-flow yield of 7.0%.
First Advantage Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from First Advantage Americas 48%, Sterling 47%, First Advantage International 5% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | -1.0% |
|---|---|---|---|
| GLS Moat | 1.9 / 10 | ROE | -2.7% |
| Debt / equity | 1.59 | ROA | -0.9% |
| Free-cash-flow yield | 7.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 60: Fair
A Wheel Score of 60 puts First Advantage Corporation in the Fair band - below the 70 the Sunday Scan requires. Value 5/25, Health 18/20, Moat 3/15, Premium 18/20 and Stability 17/20; the weakest part is Value (5/25).
Implied volatility is 70% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (18 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 449 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.3M shares a day on a market cap of $3.4B, with a beta of 1.14; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 5 / 25 | -18% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 3 / 15 | moat 1.9/10 | |
| Premium | 18 / 20 | implied volatility 70% | |
| Stability | 17 / 20 | 1.3M shares/day, $3.4B cap, beta 1.14 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Business Services
The 12 companies below are the closest to First Advantage Corporation by market cap within the Specialty Business Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BFAM Bright Horizons Family Solutions Inc. | 70.42 | 107.32 | +34% | 85Prime | $3.4B |
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| PAGS PagSeguro Digital Ltd. | 10.83 | 46.36 | +77% | 84Prime | $3.0B |
| ABM ABM Industries Inc. | 50.76 | 82.96 | +39% | 77Good | $3.0B |
| UNF UniFirst Corporation | 258.08 | 110.82 | -133% | 54Fair | $4.7B |
| FLYW Flywire Corp | 19.35 | 15.27 | -27% | 60Fair | $2.4B |
| EVTC EVERTEC, Inc. | 31.40 | 39.37 | +20% | 73Good | $1.9B |
| TIC TIC Solutions, Inc. | 8.68 | 12.57 | +31% | 45Weak | $1.9B |
| CMPR Cimpress plc | 76.72 | 166.98 | +54% | 75Good | $1.9B |
| TH Target Hospitality Corp. | 17.26 | 14.81 | -17% | 45Weak | $1.7B |
| RTO Rentokil Initial plc | 20.24 | 29.85 | +32% | 84Prime | $10.2B |
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Start free See the Sunday ScanQuestions about FA
Is FA undervalued right now?
No: at 20.08 the stock trades 18% above the GLS average fair value of 17.04 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of FA and what does it mean?
FA scores 60 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FA?
17.04 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does First Advantage Corporation report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FA have listed options, and how liquid are they?
Yes. The nightly snapshot found 104 listed contracts with 449 open interest across all expiries and implied volatility of 70% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.