FFH.TO
Fairfax Financial Holdings Ltd
Price:  
1,968.30 
CAD
Volume:  
16,709.00
Canada | Insurance
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FFH.TO WACC - Weighted Average Cost of Capital

The WACC of Fairfax Financial Holdings Ltd (FFH.TO) is 7.5%.

The Cost of Equity of Fairfax Financial Holdings Ltd (FFH.TO) is 8.40%.
The Cost of Debt of Fairfax Financial Holdings Ltd (FFH.TO) is 5.00%.

Range Selected
Cost of equity 7.30% - 9.50% 8.40%
Tax rate 15.40% - 18.80% 17.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 8.4% 7.5%
WACC

FFH.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.81 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.50%
Tax rate 15.40% 18.80%
Debt/Equity ratio 0.26 0.26
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 8.4%
Selected WACC 7.5%