FFH.TO
Fairfax Financial Holdings Ltd
Price:  
1,450.16 
CAD
Volume:  
98,138.00
Canada | Insurance
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FFH.TO WACC - Weighted Average Cost of Capital

The WACC of Fairfax Financial Holdings Ltd (FFH.TO) is 7.6%.

The Cost of Equity of Fairfax Financial Holdings Ltd (FFH.TO) is 8.75%.
The Cost of Debt of Fairfax Financial Holdings Ltd (FFH.TO) is 5.00%.

Range Selected
Cost of equity 7.70% - 9.80% 8.75%
Tax rate 15.40% - 18.80% 17.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.3% 7.6%
WACC

FFH.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.87 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 9.80%
Tax rate 15.40% 18.80%
Debt/Equity ratio 0.35 0.35
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.3%
Selected WACC 7.6%