FAF
First American Financial Corp
Price:  
59.76 
USD
Volume:  
1,067,958.00
United States | Insurance
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FAF WACC - Weighted Average Cost of Capital

The WACC of First American Financial Corp (FAF) is 5.9%.

The Cost of Equity of First American Financial Corp (FAF) is 6.65%.
The Cost of Debt of First American Financial Corp (FAF) is 5.00%.

Range Selected
Cost of equity 5.80% - 7.50% 6.65%
Tax rate 21.50% - 22.50% 22.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.6% 5.9%
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 0.41 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.50%
Tax rate 21.50% 22.50%
Debt/Equity ratio 0.33 0.33
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.6%
Selected WACC 5.9%