The WACC of Fairfax Financial Holdings Ltd (FFH.TO) is 7.5%.
Range | Selected | |
Cost of equity | 7.40% - 9.70% | 8.55% |
Tax rate | 15.40% - 18.80% | 17.10% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.7% - 8.3% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.84 | 0.9 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.40% | 9.70% |
Tax rate | 15.40% | 18.80% |
Debt/Equity ratio | 0.31 | 0.31 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.7% | 8.3% |
Selected WACC | 7.5% | |