FAF
First American Financial Corp
Price:  
65.51 
USD
Volume:  
865,045.00
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 6.2%.

The Cost of Equity of First American Financial Corp (FAF) is 6.75%.
The Cost of Debt of First American Financial Corp (FAF) is 5.00%.

Range Selected
Cost of equity 5.70% - 7.80% 6.75%
Tax rate 21.50% - 22.50% 22.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.0% 6.2%
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 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.80%
Tax rate 21.50% 22.50%
Debt/Equity ratio 0.27 0.27
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.0%
Selected WACC 6.2%