FAF
First American Financial Corp
Price:  
67.59 
USD
Volume:  
473,507.00
United States | Insurance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

FAF WACC - Weighted Average Cost of Capital

The WACC of First American Financial Corp (FAF) is 5.8%.

The Cost of Equity of First American Financial Corp (FAF) is 6.35%.
The Cost of Debt of First American Financial Corp (FAF) is 5.00%.

Range Selected
Cost of equity 5.40% - 7.30% 6.35%
Tax rate 21.50% - 22.50% 22.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.5% 5.8%
WACC

FAF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.34 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.30%
Tax rate 21.50% 22.50%
Debt/Equity ratio 0.29 0.29
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.5%
Selected WACC 5.8%