The WACC of First American Financial Corp (FAF) is 6.1%.
Range | Selected | |
Cost of equity | 5.60% - 7.90% | 6.75% |
Tax rate | 21.50% - 22.50% | 22.00% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.2% - 7.0% | 6.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.37 | 0.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.60% | 7.90% |
Tax rate | 21.50% | 22.50% |
Debt/Equity ratio | 0.29 | 0.29 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.2% | 7.0% |
Selected WACC | 6.1% | |