AFG
American Financial Group Inc
Price:  
134.08 
USD
Volume:  
353,207.00
United States | Insurance
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AFG WACC - Weighted Average Cost of Capital

The WACC of American Financial Group Inc (AFG) is 7.5%.

The Cost of Equity of American Financial Group Inc (AFG) is 8.00%.
The Cost of Debt of American Financial Group Inc (AFG) is 5.00%.

Range Selected
Cost of equity 6.90% - 9.10% 8.00%
Tax rate 19.60% - 20.30% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.5% 7.5%
WACC

AFG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.66 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.10%
Tax rate 19.60% 20.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.5%
Selected WACC 7.5%