First Advantage Corporation

IndustrialsSpecialty Business ServicesNASDAQ

$15.56

Market Cap: $2.67B

First Advantage Corporation (FA) Valuation Summary

Updated Apr 6, 2026 22:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$20.95 – $58.42	$30.33	+171.0%
Growth Exit 10Y	$34.11 – $101.21	$50.92	+355.1%
EBITDA Exit 5Y	$20.80 – $47.87	$33.20	+196.7%
EBITDA Exit 10Y	$30.37 – $71.73	$47.93	+328.3%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$19.31 – $31.34	$17.52	+56.5%
EV/Revenue	$12.34 – $34.31	$14.43	+29.0%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$16.34 – $22.78	$18.99	+69.7%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$30.33

Market Price

$15.56

Upside / Downside

+94.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Advantage Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.7% to 21.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 81, DPO 57, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $30.33 per share, suggesting FA is undervalued by 94.9% at the current price of $15.56.

FCFF Present Value Calculation

WACC

8.50%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	280	300	324	395	482	494
(−) Net Interest	86	92	99	121	147	151
(+) D&A	27	32	36	42	54	56
EBITDA	393	423	460	558	684	701

(−) Tax	77	83	89	109	133	136
(−) CapEx	47	50	54	66	81	83
(−) ΔWC	189	26	33	96	117	120
Free Cash Flow (FCFF)	79	264	283	287	354	362

Terminal Value						6,045
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	76	234	230	216	245	4,021

Enterprise Value	5,022
Projection Period	1,001	19.9%
Terminal Value	4,021	80.1%

(−) Current Net Debt	(231)

Equity Value	5,253
(/) Outstanding Shares	173

Fair Price	$30.33

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$38	$41	$46	$51	$58
7.5%	$32	$34	$36	$40	$44
8.5%	$27	$29	$30	$32	$35
9.5%	$24	$25	$26	$27	$29
10.5%	$21	$22	$23	$24	$25

Current price: $15.56. Green = undervalued, Red = overvalued.

Fair Value

$50.92

Market Price

$15.56

Upside / Downside

+227.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Advantage Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 5.7% to 6.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 81, DPO 57, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $50.92 per share, suggesting FA is undervalued by 227.3% at the current price of $15.56.

FCFF Present Value Calculation

WACC

8.50%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	280	300	324	395	482	573	662	745	814	864	886
(−) Net Interest	86	92	99	121	147	175	202	228	249	264	271
(+) D&A	27	32	36	42	54	60	70	82	96	110	113
EBITDA	393	423	460	558	684	808	934	1,054	1,159	1,238	1,269

(−) Tax	77	83	89	109	133	158	183	205	224	238	244
(−) CapEx	47	50	54	66	81	96	111	125	137	145	149
(−) ΔWC	189	26	33	96	117	122	120	111	93	67	69
Free Cash Flow (FCFF)	79	264	283	287	354	432	520	613	704	788	807

Terminal Value											13,465
WACC / Discount Rate	8.5%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	76	234	230	216	245	276	306	332	352	363	5,958

Enterprise Value	8,589
Projection Period	2,631	30.6%
Terminal Value	5,958	69.4%

(−) Current Net Debt	(231)

Equity Value	8,819
(/) Outstanding Shares	173

Fair Price	$50.92

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.5%	$68	$74	$80	$89	$101
7.5%	$55	$59	$63	$68	$74
8.5%	$46	$48	$51	$54	$58
9.5%	$39	$41	$43	$45	$47
10.5%	$34	$35	$36	$38	$40

Current price: $15.56. Green = undervalued, Red = overvalued.

Fair Value

$33.21

Market Price

$15.56

Upside / Downside

+113.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Advantage Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.7% to 21.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 81, DPO 57, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 9.7x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $33.20 per share, suggesting FA is undervalued by 113.3% at the current price of $15.56.

FCFF Present Value Calculation

WACC

8.50%

3% – 20%

EV/EBITDA Exit Multiple

9.69x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	280	300	324	395	482	494
(−) Net Interest	86	92	99	121	147	151
(+) D&A	27	32	36	42	54	56
EBITDA	393	423	460	558	684	701

(−) Tax	77	83	89	109	133	—
(−) CapEx	47	50	54	66	81	—
(−) ΔWC	189	26	33	96	117	—
Free Cash Flow (FCF)	79	264	283	287	354	—

Peers' EBITDA Multiple						9.7x
Terminal Value						6,794
WACC / Discount Rate	8.50%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	76	234	230	216	245	4,519

Enterprise Value	5,520
Projection Period	1,001	18.1%
Terminal Value	4,519	81.9%

(−) Current Net Debt	(231)
Equity Value	5,751
(÷) Outstanding Shares	173M
Fair Price	$33	+113.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	5.7x	7.7x	9.7x	11.7x	13.7x
6.5%	$24	$30	$36	$42	$48
7.5%	$23	$29	$35	$40	$46
8.5%	$22	$28	$33	$39	$44
9.5%	$22	$27	$32	$37	$42
10.5%	$21	$26	$31	$36	$40

Current price: $15.56. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$47.94

Market Price

$15.56

Upside / Downside

+208.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Advantage Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 5.7% to 6.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 81, DPO 57, DIO 60). At a 8.5% WACC with mid-year discounting, the terminal value (67% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 9.7x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $47.93 per share, suggesting FA is undervalued by 208.0% at the current price of $15.56.

FCFF Present Value Calculation

WACC

8.50%

3% – 20%

EV/EBITDA Exit Multiple

9.69x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	280	300	324	395	482	573	662	745	814	864	886
(−) Net Interest	86	92	99	121	147	175	202	228	249	264	271
(+) D&A	27	32	36	42	54	60	70	82	96	110	113
EBITDA	393	423	460	558	684	808	934	1,054	1,159	1,238	1,269

(−) Tax	77	83	89	109	133	158	183	205	224	238	—
(−) CapEx	47	50	54	66	81	96	111	125	137	145	—
(−) ΔWC	189	26	33	96	117	122	120	111	93	67	—
Free Cash Flow (FCF)	79	264	283	287	354	432	520	613	704	788	—

Peers' EBITDA Multiple											9.7x
Terminal Value											12,299
WACC / Discount Rate	8.50%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	76	234	230	216	245	276	306	332	352	363	5,442

Enterprise Value	8,073
Projection Period	2,631	32.6%
Terminal Value	5,442	67.4%

(−) Current Net Debt	(231)
Equity Value	8,304
(÷) Outstanding Shares	173M
Fair Price	$48	+208.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	5.7x	7.7x	9.7x	11.7x	13.7x
6.5%	$40	$48	$56	$64	$72
7.5%	$38	$45	$52	$59	$66
8.5%	$35	$41	$48	$54	$61
9.5%	$33	$38	$44	$50	$56
10.5%	$30	$36	$41	$47	$52

Current price: $15.56. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$17.52

Market Price

$15.56

Upside / Downside

+12.6%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), First Advantage Corporation (FA) has a fair value of $17.52 based on 8 comparable companies in the Specialty Business Services industry.

EV/EBITDA Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
First Advantage CorporationFA	2,695	6.5x	11.7x
Trinity Industries, Inc.TRN	2,583	8.2x	5.4x
Triton International LimitedTRTN-PC	2,483	7.5x	8.0x
Hub Group, Inc.HUBG	2,248	7.8x	8.4x
Alamo Group Inc.ALG	2,032	9.8x	9.4x
TIC Solutions, Inc.TIC	1,566	15.2x	20.8x
Upwork Inc.UPWK	1,480	9.6x	8.9x
Ameresco, Inc.AMRC	1,269	13.7x	12.6x
LegalZoom.com, Inc.LZ	1,078	11.1x	12.3x
Industry Median		9.7x	9.2x
(*) EBITDA		380	210
= Enterprise Value		3,681	1,925
(-) Net Debt		-231	-231
Equity Value		3,912	2,156
(/) Outstanding shares		173	173
Fair Price		$23	$12

Selected Fair Value (avg of trailing + forward)

$17.52

+12.6%

Fair Value

$14.43

Market Price

$15.56

Upside / Downside

-7.3%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), First Advantage Corporation (FA) has a fair value of $14.43 based on 9 comparable companies in the Specialty Business Services industry.

EV/Revenue Valuation — Specialty Business Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
First Advantage CorporationFA	2,695	1.6x	2.8x
Intuitive Machines, Inc.LUNR	3,653	16.4x	3.7x
Trinity Industries, Inc.TRN	2,583	3.6x	2.4x
Triton International LimitedTRTN-PC	2,483	6.3x	6.7x
Hub Group, Inc.HUBG	2,248	0.7x	0.7x
Alamo Group Inc.ALG	2,032	1.2x	1.2x
TIC Solutions, Inc.TIC	1,566	1.9x	2.5x
Upwork Inc.UPWK	1,480	2.0x	1.9x
Ameresco, Inc.AMRC	1,269	1.6x	1.5x
LegalZoom.com, Inc.LZ	1,078	1.2x	1.3x
Industry Median		1.9x	1.9x
(*) Revenue		1,574	871
= Enterprise Value		2,921	1,616
(-) Net Debt		-231	-231
Equity Value		3,152	1,847
(/) Outstanding shares		173	173
Fair Price		$18	$11

Selected Fair Value (avg of trailing + forward)

$14.43

-7.3%

Earnings Power Value

Fair Value

$18.99

Market Price

$15.56

Upside / Downside

+22.0%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 8.5% and normalized earnings of $259.8M, the company has a fair value of $18.99 per share. The EPV range is $16.34 – $22.78 based on WACC sensitivity (7.0% – 10.0%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	260	260	260
(/) WACC	10.0%	8.5%	7.0%
Enterprise Value	2,599	3,058	3,714
(-) Net debt	-231	-231	-231
Equity Value	2,830	3,289	3,945
(/) Outstanding shares	173	173	173
Fair Price	$16.34	$18.99	$22.78

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.