FAF
First American Financial Corp
Price:  
61.90 
USD
Volume:  
770,140.00
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 7.7%.

The Cost of Equity of First American Financial Corp (FAF) is 8.95%.
The Cost of Debt of First American Financial Corp (FAF) is 5.00%.

Range Selected
Cost of equity 7.90% - 10.00% 8.95%
Tax rate 21.80% - 22.70% 22.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.0% - 8.5% 7.7%
WACC

FAF WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.75 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.00%
Tax rate 21.80% 22.70%
Debt/Equity ratio 0.32 0.32
Cost of debt 5.00% 5.00%
After-tax WACC 7.0% 8.5%
Selected WACC 7.7%