The WACC of Fairfax Financial Holdings Ltd (FFH.TO) is 7.0%.
Range | Selected | |
Cost of equity | 6.80% - 9.30% | 8.05% |
Tax rate | 15.40% - 18.80% | 17.10% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.1% - 7.8% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.72 | 0.84 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.80% | 9.30% |
Tax rate | 15.40% | 18.80% |
Debt/Equity ratio | 0.38 | 0.38 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.1% | 7.8% |
Selected WACC | 7.0% | |