MYFW
First Western Financial Inc
Price:  
23.40 
USD
Volume:  
50,460.00
United States | Banks
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MYFW WACC - Weighted Average Cost of Capital

The WACC of First Western Financial Inc (MYFW) is 8.3%.

The Cost of Equity of First Western Financial Inc (MYFW) is 9.40%.
The Cost of Debt of First Western Financial Inc (MYFW) is 5.00%.

Range Selected
Cost of equity 8.30% - 10.50% 9.40%
Tax rate 25.30% - 25.80% 25.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.2% 8.3%
WACC

MYFW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.97 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.50%
Tax rate 25.30% 25.80%
Debt/Equity ratio 0.24 0.24
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.2%
Selected WACC 8.3%

MYFW's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for MYFW:

cost_of_equity (9.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.97) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.