AFG
American Financial Group Inc
Price:  
139.98 
USD
Volume:  
540,224.00
United States | Insurance
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AFG WACC - Weighted Average Cost of Capital

The WACC of American Financial Group Inc (AFG) is 7.4%.

The Cost of Equity of American Financial Group Inc (AFG) is 7.85%.
The Cost of Debt of American Financial Group Inc (AFG) is 5.00%.

Range Selected
Cost of equity 6.80% - 8.90% 7.85%
Tax rate 19.60% - 20.30% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 8.4% 7.4%
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 0.63 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.90%
Tax rate 19.60% 20.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 8.4%
Selected WACC 7.4%